AMMB Holdings Berhad [%XXcT%] 
Research by Public Invest
NEUTRAL: Price Target: RM3.10

"Disposing AmGeneral Insurance"

The Group announced that its 51%-owned AmGeneral Holdings Berhad has entered into an Implementation Agreement with Liberty Insurance Berhad to dispose its entire interest in AmGeneral Insurance for RM2.29bn. While more specific details on the transaction will be released in due course, we are slightly positive on the deal which prices the transaction at ~10x earnings multiple, provide some capital uplift while also allowing the Group to equity-account combined earnings of Liberty Insurance and AmGeneral Insurance which does not appear to leave it any worse off. We keep earnings estimates unchanged at this juncture pending further clarity on details. Our Neutral call and RM3.10 target price are also kept unchanged.

Ching Weng Jin
T 603 2268 3000
E [%NqZI%]

AMMB Holdings Berhad $KLSE-AMBANK 
Research by Public Invest
NEUTRAL: Price Target: RM3.10

"Disposing AmGeneral Insurance"

The Group announced that its 51%-owned AmGeneral Holdings Berhad has entered into an Implementation Agreement with Liberty Insurance Berhad to dispose its entire interest in AmGeneral Insurance for RM2.29bn. While more specific details on the transaction will be released in due course, we are slightly positive on the deal which prices the transaction at ~10x earnings multiple, provide some capital uplift while also allowing the Group to equity-account combined earnings of Liberty Insurance and AmGeneral Insurance which does not appear to leave it any worse off. We keep earnings estimates unchanged at this juncture pending further clarity on details. Our Neutral call and RM3.10 target price are also kept unchanged.

Ching Weng Jin
T 603 2268 3000
E research@publicinvestbank.com.my