Allen & Overy is advising The Dai-ichi Life Insurance Company, Limited (Dai-ichi) on its IDR3.3 trillion (approximately USD337 million) acquisition of a 40 percent stake in PT Panin Life (Panin Life) of Indonesia.
The strategic joint venture encompasses a long-term exclusive bancassurance agreement between Panin Life and PT Bank Pan Indonesia, Tbk (Panin Bank).
Dai-ichi, the only listed company among Japan’s big four life insurers, was the successful bidder in an auction process for the stake in Panin Life. The deal was announced on 4 June. Completion of the acquisition and the commencement of the bancassurance business are expected within the next three to six months, following regulatory approval.
Under the terms of the agreement, Dai-ichi will hold a 5 percent equity stake in Panin Life by acquiring newly issued shares. It will also subscribe for 36.842 percent of the shares in PT Panin Internasional, Panin Life’s immediate holding company. The transaction forms part of Dai-ichi’s broader strategy to enhance its overseas life insurance operations in the Asia Pacific region, following the expansion of its business into Vietnam, India, Thailand and Australia.
Commenting on the deal, Singapore-based partner Chris Moore said: “We are very pleased to be involved in this deal as it is an important strategic transaction for our client, Dai-ichi Life, and the first M&A transaction involving an Indonesian insurance company to go before Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan), Indonesia’s new financial services regulator. It also plays well to our strengths given our experience of helping Japanese companies invest in the emerging markets of ASEAN, like Indonesia, a trend we expect to see increase.”
Singapore corporate partner Chris Moore is leading the Allen & Overy team with support from senior associate James Mythen and associate Maurice Simon.
Other law firms with a significant role on the transaction include:
- Hibiya Nakata – Japanese Legal Advisors to Dai-ichi;
- Makes & Partners – Indonesian Legal Advisors to Panin Group;
- Soewito Suhardiman Eddymurthy Kardono – Indonesian Legal Advisors to Dai-ichi.
