Malaysia's Avicennia Capital plans to sell Turkish health insurer for around $300 mln
Source: Middle East Insurance Review | Mar 2018
Avicennia Capital, a sovereign wealth enterprise of Khazanah Nasional Bhd, is seeking to sell its Istanbul-based health insurance unit, Acibadem Sigorta, for around US$300 million, reported Bloomberg, citing people familiar with the matter.
The reports said Avicennia Capital has hired Barclays to manage the sale of Acibadem Sigorta, formally known as Acibadem Saglik ve Hayat Sigorta AS.
The potential sale of Acibadem Sigorta came after Turkish President Recep Tayyip Erdogan last year pushed a range of measures, including cheaper health insurance and tax breaks, in a bid to boost economic growth that slowed in the wake of July’s failed coup.
Barclays and Khazanah declined to comment on the sale, the reports said. Acibadem Sigorta is the largest health insurer by premiums in the country after Allianz SE, with an 18% market share, according to data from the Insurance Association of Turkey.
Avicennia bought 90% of Acibadem Sigorta for $252 million in 2013 from founder Mehmet Ali Aydinlar and Abraaj Capital. It bought the remainder after the company stopped trading its shares on Borsa Istanbul.
The Turkish insurance industry has lured several international investors over the past decade, including Aviva, Cigna, Achmea BV and Sompo Holdings.
Turkey’s health premiums rose 19% to TRY5 billion (US$1.3 billion) in 2017. M
TRY1 = US$0.27