The impact of acquisition exercise by Mayban Fortis towards MNI Holdings / Mohamed Hanafi Baron, Nur Azura Nordin and Zahrul Hisham Hj Damin

Mayhan Fortis Holdings Berhad (Mayhan Fortis) was incorporated on 3rd July 2001, as a result of strategic alliance between Maybank and Fortis Insurance National N.V. Fortis insurance National N.V has 30 % equity participation in Mayhan Fortis Mayhan Fortis Holding Berhad (Mayhan Fortis) is the insurance arm of the Maybank Group - the joint venture between Maybank (70% ownership) and Fortis (30% ownership). Mayhan Fortis has acquired 74.24% stake in Malaysian National Insurance Holdings (MNIH) effectively 13th December 2005. The reason for acquisition by Mayhan Fortis towards MNI Holdings: To strengthen the Maybank Insurance Group's (MIG) local insurance position. Currently, the group is having small market share in which the group is concentrating in bancassurances / bancatakaful. By acquiring MNI Holdings, it allows the group to have larger insurance market share in less time spent with reduce risk of competition reaction. By Merger and Acquisition, it provides Mayhan Fortis opportunities to exploit the organization's core competence in the new area. Maybank Group could expand their current core competence i.e. in bank and financial sector to be extended to insurance and takaful sector. It could also provide cost efficiency by cutting out duplication or by gaining scale advantage.