Bank Mandiri has received shareholder approval to acquire 80% of PT Asuransi Jiwa InHealth Indonesia (InHealth), a health insurer owned by PT Askes (Persero), in a transaction valued at IDR1.75trn ($150m).
The acquisition is part of the Conditional Share Purchase Agreement (CSPA) signed between Bank Mandiri, Kimia Farma and Asuransi Jasa Indonesia (Jasindo) with Persero and Cooperative Bhakti Askes on 23 December 2013.
According to the agreement, Mandiri will initially purchase 60% stake in InHealth, while Kimia Farma and Jasindo will acquire 10% stake respectively, and Askes 20% of shares. By the end of 2014, Askes’ 20% of shares will be acquired by Mandiri.
Bank Mandiri president director Budi Sadikin said that the acquisition will make InHealth a major player in the health insurance industry and to provide added value for health services in Indonesia.
"We are optimistic that the transfer of ownership will give a new strength to InHealth and improve the business through the support of the bank’s and Jasindo’s distribution network and customer base; and also the comprehensive health services offered by Kimia Farma.
"Total spending in the areas of healthcare, including insurance could increase by 20-25% per year by some estimates. In addition, the labor force increases by 800 thousand – 1 million annually. Offering potential to be developed by the bank," Sadikin added.
InHealth had 49 service offices across Indonesia, with over 4,000 health care providers including hospitals, pharmacies and physicians as at December 2013.
—————————————————————————————————————————————————————————Image: Bank Mandiri receives shareholder approval to buy Indonesian insurer InHealth. Photo courtesy of Chaiwat/FreeDigitalPhotos.net.