Kurnia Group
Kurnia Asia ventures into Indonesia
THE EDGE - Wednesday, November 8th, 2006
Kurnia Asia Bhd is venturing into Indonesia by acquiring an 80% stake in PT
Asuransi Aegis Indonesia for RM17.084 million cash consideration.
Kurnia Asia said on Nov 8 that the stake, comprising of 12 million shares,
would be acquired from Aegis Holdings Ltd (AHL), PT Arthajasa Sekawan (Arthajasa),
PT Megatama Tatabersama (Megatama) and PT Mitra Millenium Utama (Mitra Milenium).
"The proposed acquisition is part of Kurnia Asia's long-term business strategy
to expand geographically," it said on Nov 8. The acquisition would enable it
to gain immediate access into the general insurance market in Indonesia.
The purchase consideration will be fully settled by cash, and will be financed
by its own funds.
Aegis is principally involved in general insurance business and started commercial
activities in 1988.
Meanwhile, Kurnia Asia's net profit fell 36% to RM23.76 million for the first
quarter ended Sept 30, 2006, compared with RM37.18 million a year ago. Revenue
was RM285.18 million, up 2.3% from RM278.64 million. Earnings per share was
1.58 sen versus 2.48 sen.