Nice Japanese Holdings has engaged EY to guage OCBC’s S$1.4bn ($1.03bn) acquisition supply, reported Bloomberg, citing sources.
The supply, introduced earlier this month, might probably result in OCBC growing its stake within the Singapore-based insurer to 100% from the present 88.44%.
If profitable, the acquisition would lead to Nice Japanese being delisted from the Singapore Alternate Securities Buying and selling.
EY’s position can be to evaluate the deserves of the supply and advise Nice Japanese’s board accordingly, the sources stated.
The acquisition is a part of OCBC’s technique to strengthen its core providers, which embody banking, wealth administration and insurance coverage.
By absolutely integrating Nice Japanese, OCBC goals to fulfill growing demand for wealth administration options in Asia.
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Nice Japanese, with a historical past relationship again to 1908, boasts greater than $100bn in property and serves greater than 16 million policyholders.
It operates by means of numerous channels resembling a tied company power, bancassurance and a monetary advisory unit.
In response to the information company’s queries, the insurer’s spokesperson acknowledged: “We can be issuing an announcement on this matter in the end.”
EY declined to touch upon the information, the publication added.
The unbiased monetary adviser’s opinion is especially vital as that is OCBC’s third try and privatise the insurer after going through some resistance from minority shareholders.
Nice Japanese’s board is required to share the advisor’s opinion with its shareholders, enabling them to make an knowledgeable determination concerning the supply.
OCBC has a protracted historical past with Nice Japanese, having held a majority stake for greater than twenty years.
The financial institution made earlier makes an attempt to extend its possession in 2004 and 2006.
In October 2023, Nice Japanese expanded its attain in Malaysia by signing an settlement to amass two insurance coverage companies by means of its subsidiaries, AMAB Holdings and MetLife Worldwide.
