Written by Helen Nyambura-Mwaura | From Reuters

South Africa’s biggest insurer, Sanlam (SLMJ.J), said on Wednesday it would buy a majority stake in Malaysia’s MCIS Zurich Insurance Berhad for about $119 million, further expanding its presence in the southeast Asian nation.

Sanlam said it would initially buy a 40 percent from a major shareholder, Koperasi MCIS Berhad, and another 11 percent through an offer to minority shareholders.

Koperasi will part with bigger chunk should minority shareholders decline whatever bid Sanlam places on the table.

After the 1.25 billion rand ($119 million) purchase, MCIS Zurich will have to dispose of its short-term insurance business as Malaysian regulations do not allow an investor to operate more than one life or general insurance license.

Sanlam already has a short-term insurance business in Malaysia after acquiring a 49 percent share in Pacific & Orient Insurance Co. in 2013.

Read more at Reuters