Staco Mandiri Acquisition by Malaysian Insurer Completes Soon

  • Font:
  • Ukuran Font: - +
  • TEMPO.CO, Jakarta - The Financial Services Authority (OJK) said announced that the acquisition process of PT Asuransi Staco Mandiri by Malaysian insurance Tune Insurance Holding Bhd has reached 70 percent. A fit and proper test to determine the controlling shareholder is likely to be done next week, OJK director for non-bank financial industry Firdaus Djaelani told Bisnis Indonesia on Friday.

    Djaelani also said the acquisition is expected to be final by June 2015, with Tune Insurance becoming Staco Mandiri's majority shareholder with 50.9 percent ownership.

    Staco Mandiri is one of 6 insurers that failed to meet the minimum capital requirement, thus it resorted to sell some of its shares in order to raise capital. Tune Insurance is reported to have prepared US$10 million for the acquisition.

    Tune Insurance CEO Junior Cho said that the acquisition's technical processes are completed. Both companies are now waiting for approvals from the financial regulators of their countries.