HONG KONG/SINGAPORE – A consortium of Canada's Sun Life Financial Inc and Malaysian state investor Khazanah Nasional Bhd has agreed to buy British insurer Aviva plc's Malaysian insurance joint venture with CIMB Group for about 1.7 billion ringgit ($563 million), sources said on Sunday, helping the Canadian company to expand its Asian foot print.
Sun Life Financial Inc and Khazanah edged out rival Manulife Financial Corp to win the eight-month old auction, sources familiar with the sale process said.
Britain's No.2 insurer Aviva is exiting from marginal markets across the world and the sale of Malaysian unit is part of that overhaul. Last month, Aviva sold its U.S. business for $1.8 billion, its biggest disposal, aimed at boosting its underperforming share price.
The deal is expected to be signed on Monday, the sources added.
A Sun Life spokeswoman did not offer an immediate comment. Aviva could not be reached for a comment immediately. CIMB and Khazanah officials were not available for an immediate comment.
(Additional reporting by Yantoultra Ngui in KUALA LUMPUR and Clare Baldwin in HONG KONG; Reporting by Denny Thomas and Saeed Azhar; Editing by Jeremy Laurence)