Photo by ABDA

JAKARTA (TheInsiderStories) – Spanish’s insurer MAPFRE Group through its subsidiary MAPFRE AMERICA SA has effective control of Indonesian insurance company PT Asuransi Bina Dana Arta Tbk (IDX: ABDA), the company announce. The transaction was closed at a price of 90 million euros.

MAPFRE has announced a takeover plan of 31 percent stake in ABDA or equivalent to 192.45 million shares in October 2016. With this takeover, MAPFRE which currently owns 20 percent shares or 124.16 million shares of ABDA will become majority owner of 51 percent.

Based on the laws applicable in Indonesia after the acquisition is completed, MAPFRE is required to conduct a tender offer for all publicly owned shares of ABDA.

The purpose of this acquisition is to reinforce MAPFRE’s entry into the Indonesian insurance market. MAPFRE entered Indonesia since 2014.

Indonesia’s population of 250 million makes it the world’s fourth most populous country and, according to MAPFRE, the market for automobile insurance shows enormous potential, based on greatly increased auto sales in recent years, driven in turn by improved consumer wealth and developments in the regulatory environment.

MAPFRE is a Spanish insurance group operating in 49 countries on 5 continents provides a full range of insurance products, including coverage for automobiles, homes, motorcycles, watercraft and businesses, as well as term life insurance.

MAPFRE employs more than 38,000 professionals and services approximately 34 million clients. In 2015 MAPFRE’s revenue surpassed 26,700 million euros, with net earnings of 709 million euros.

While, ABDA Insurance has listed its shares on the Jakarta Stock Exchange and Surabaya Stock Exchange since July, 6, 1989, becoming the first general insurance company to go public at that time. ABDA Insurance has conducted a number of corporate actions and share issuances.

In 2015, ABDA was ranked fifth in automobile insurance in Indonesia, with a market share of 6.4 percent, and the company ended 2016 with premium volume of Rp953.76 billion and net earnings of Rp173.48 billion.

(Written by Linda Silaen, Email : linda.silaen@theinsiderstories.com)

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