(BCG) On December 2nd, 2021, Bamboo Capital Group (HOSE: BCG) and its subsidiary BCG Financial Joint Stock Company received Ministry Of Finance approval for the acquisition of 80.64% of shares of AAA Insurance Joint Stock Company. The transfer dossier of this deal has been submitted and approved by the Ministry of Finance of Vietnam.
The total number of shares of AAA Insurance is currently 112,261,006 shares, in which BCG now owns 79,705,315 shares and BCG Financial owns 10,822,468 shares, equivalent to 71% and 9.64% ownership of AAA Insurance's charter capital respectively. With a total ownership of 80.64%, Bamboo Capital Group has replaced IAG as the largest shareholder of AAA Insurance.
Mr. Pham Minh Tuan - Vice Chairman of Bamboo Capital Group said: “This deal marks the official entry of BCG into the Vietnam insurance market. It is our long-term vision to build up a solid base for the financial sector to develop four strategic spearheads, which are insurance, banking, fintech and securities services. We also intend to continue improving the service quality of AAA Insurance and expand to life insurance segment in the near future.”
From September 2021, BCG has expanded the Group's activities into the financial services sector by establishing BCG Financial JSC. BCG Financial is the fifth strategic business segment of Bamboo Capital Group while manufacturing, construction, real estate, and renewable energy are the first four segments. BCG’s long-term strategy is to build an ecosystem that works sustainably and robustly. In the upcoming time, BCG plans to affirm its position in the field of banking, securities services and fintech.
Established in 2005, AAA Insurance is one of the pioneering non-life insurance companies in Vietnam. Since 2013, AAA Insurance became a subsidiary of Insurance Australia Group Limited (IAG). After 16 years of establishment, AAA Insurance opened51 branches and 100 transaction offices nationwide. However today, AAA has been restructured and operates under a much more efficient footprint of 17 Branches and transaction offices. AAA Insurance specializes in providing products for individual and corporate customers such as Construction Insurance, Fire and Explosion Insurance, Motor Vehicle Insurance, Personal Accident Insurance, Travel Insurance and so on.
During the comprehensive due diligence process, we realised there was significant opportunity to improve on the prospects of AAA Insurance to reflect its potentials, strengths and growth prospects The Company has a strong financial background, which is managed under the strict financial regulations and corporate governance of Insurance Australia Group Ltd. (IAG). AAA's products and services are highly appreciated by customers in the market. Although the Company's financial statements have accumulated losses of nearly 800 billion VND, these are losses related to long-term investment assets unrelated to the insurance business. During their term, IAG’s Management decided to liquidate those non-core assets so AAA Insurance can focus on their insurance business. The share acquisition value from this transaction is calculated with prudence and care based on market approach.", Mr. Pham Minh Tuan revealed.
The advantages and the platform that AAA Insurance possesses are favorable for BCG to inherit in order to further improve the quality of non-life insurance products and develop more life insurance products, besides giving new offerings to meet the requirements of the ever-changing market in the future. This also demonstrates BCG's potentials from business expansion and achieving the long-term goal of building a multi-industry ecosystem in the future.
More information about BCG Financial JSC:
BCG Financial Joint Stock Company provides financial services with a charter capital of VND 400 billion, 80% of which is held by BCG. BCG Financial is the fifth strategic business segment of BCG while manufacturing, construction, real estate, and renewable energy are the first four segments. In the upcoming time, BCG Financial plans to affirm its position in the field of banking, securities services and fintech.