AIA Berhad (“AIA”) announced on 26 July 2021 that it will make a minority equity investment in TNG Digital Sdn Bhd (“TNG Digital”), the owner of Touch ‘n Go eWallet, Malaysia’s largest eWallet company (“the Proposed Investment”).
 
According to a media report, the Proposed Investment values TNG Digital at US$700 million or approximately RM3.0 billion.
 
The Chief Executive Officer of AIA said in AIA’s joint statement with TNG Digital that the Proposed Investment “marks the continuation of (AIA’s) digital transformation journey and ambition to reach new customer segments using online platforms”. The collaboration will enable AIA to offer innovative and personalised insurance solutions online as well as through its traditional distribution channels to Touch 'n Go eWallet customers.
 
Among the other shareholders of TNG Digital are Touch 'n Go, a wholly-owned subsidiary of CIMB Group Holdings Bhd and Ant Group.
 
The CEO of the Touch ‘n Go Group also mentioned in the joint statement that the partnership with AIA enables them to venture into the insurance industry and “coincides with (Touch ‘n Go Group’s) continued evolution into deeper areas of financial services”.
 
Skrine advised AIA on the Proposed Investment. To’ Puan Janet Looi (Corporate Division Head) led the Skrine team and was supported by Partner Sheba Gumis (Corporate M&A Practice Group), Partner Lee Ai Hsian and Associate Tai Kean Lynn (Fintech Practice Group), Partner Tan Shi Wen and Associate Angela Hii (Competition Practice Group), as well as Partner Jillian Chia and Associate Beatrice Yew (Data Protection Practice Group).
 
Media announcement and coverage of the transaction can be accessed at:
 
https://www.aia.com.my/en/about-aia/media-centre/press-releases/2021/Press-Release-AIA-Malaysia-and-Touch-n-Go-eWallet-Form-Long-Term-Strategic-Partnership.html
 
https://www.theedgemarkets.com/article/aia-malaysia-takes-minority-stake-touch-n-go-ewallet-confirms-edge-report