Sun Life Financial Inc (TSE:SLF, Mkt cap 25.27B, P/E 11.64, Div/yield 0.39/3.77, EPS 3.55, Shares 612.41M) has announced it will be buying out a long-time partner to acquire full control of their joint venture in Indonesia.
In an official statement, the Canadian life insurance company said that once it has secured the remaining 51% stake in PT CIMB Sun Life from CIMB Group, it intends to integrate CIMB Sun Life with its separate Indonesian subsidiary.
Kuala Lumpur-based CIMB is one of the world’s largest Islamic banks and one of the largest in the ASEAN countries.
The agreement with CIMB Niaga will give Sun Life the ability to market its products through the bank’s 618 branches, strengthening its customer base throughout Indonesia, the company said.
“This is an exciting opportunity to deepen and enhance our business in Indonesia, a priority market for our long-term growth in Asia,” said Kevin Strain, President, Sun Life Financial Asia.
“We had anticipated and positioned ourselves well to meet the ‘single presence’ policy, and uniting the businesses in SLF Indonesia will give us even greater ability to serve our customers. This includes more efficient investment in technology, products and brand.”
Sun Life, one of Canada’s largest life insurance and wealth management companies, hopes the changes will build further on Sun Life Financial’s momentum in Indonesia, increasing its presence across the country.
The transaction is expected to close by the end of the third quarter of 2016, subject to regulatory approvals.
Sun Life Financial Inc. (Sun Life Financial) is a Toronto based financial services organization. Sun Life provides a range of protection and wealth products and services to individuals and corporate customers. The Company operates in five segments: Sun Life Financial Canada (SLF Canada), Sun Life Financial United States (SLF U.S.), MFS Investment Management (MFS), Sun Life Financial Asia (SLF Asia) and Corporate. The Company distributes its products through a variety of distribution channels, including direct sales agents, managing general agents, independent general agents, financial intermediaries, broker-dealers, banks, pension and benefits consultants and other third-party marketing organizations. The Company operates in Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. More from Reuters »
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