AIA Group Ltd. is in advanced talks to acquire MediCard Philippines Inc. to take over, people familiar with the matter said, as the insurance giant looks to bolster its presence in Southeast Asia.
AIA and MediCard are finalizing details of a transaction and could reach an agreement in the coming weeks after the Hong Kong-based insurance company outbid other insurers and investment funds, the people said. A deal could value the Philippine company at more than $350 million, the people said, asking not to be identified as the matter is private.
No final decision has been made yet and talks may still fail, the people said. An AIA representative declined to comment, while a MediCard representative did not immediately respond to requests for comment.
The close-knit healthcare company is working with a financial advisor on the potential sale that could value the company at $300 million to $400 million, Bloomberg News reported earlier this year.
While AIA recorded a 15% decline in new business value in the first half of this year as Covid lockdowns dented insurance sales in mainland China, new business profitability grew positively in June. Shares are down about 9% in Hong Kong this year, valuing the company at about $108.5 billion. In the Philippines, AIA offers life and non-life insurance.
MediCard is the only health maintenance organization in the Philippines founded and operated by physicians, according to its website. Founded in 1986, the company has grown from providing healthcare to individuals and families to serving large local and multinational corporations. It has nearly one million members and more than 54,000 accredited physicians in more than 1,000 hospitals and clinics nationwide.
– With help from Ian Sayson.
Photo: The AIA Central building, housing the headquarters of AIA Group Ltd. is located, center, next to the Bank of China Tower, rear right, and CCB Tower, in Hong Kong, China, on Wednesday, March 9, 2022. Photo credit : Bertha Wang/Bloomberg
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