Allianz plans to buy majority stake in Singapore's Income Insurance
Deal is Allianz's biggest in Asia
Allianz to become Asia's fourth largest insurer, up from ninth
Income Insurance's top shareholder praises the deal
Updates with details in paragraph 9, with context in paragraphs 2, 10-12
By Alexander Hübner and Tom Sims
FRANKFURT, July 17 (Reuters) -German insurer Allianz ALVG.DE said on Wednesday that it was planning to buy a majority stake in Singapore's Income Insurance for about $1.6 billion to strengthen its foothold in Asia.
The offer by Allianz, one of Europe's most valuable financial firms in terms of its market capitalisation, for a stake of at least 51% is its largest acquisition in Asia and its biggest deal in three years.
It comes as the insurance sector in Singapore is experiencing consolidation and increased deal activity.
Allianz said it would offer $40.58 Singapore dollars per share for a transaction value of 2.2 billion Singapore dollars ($1.64 billion).
Allianz said the move would make it Asia's fourth-largest insurer, up from ninth previously.
"This majority stake is expected to elevate Allianz's presence in the fast-growing and attractive Singapore insurance market," Allianz said.
Income Insurance said Allianz was committed to investing in Singapore and that its own position in the market gave the deal a strong and compelling rationale.
The target's top shareholder, NTUC Enterprise, which holds a nearly 73% stake, said it would remain a "substantial" shareholder and praised the deal.
The purchase is still subject to the approval of regulators.
Allianz has for years been making incremental pushes into Asia, with its investment division expanding in China in June.
Last year, China's securities regulator granted approval for Allianz Global Investors to set up an onshore fund management company.
Allianz's last big deal was buying Aviva's Polish operations in 2021 for 2.5 billion euro ($2.72 billion).
($1 = 1.3422 Singapore dollars)
($1 = 0.9178 euros)
Reporting by Yantoultra Ngui in Singapore, Alexander Huebner and Tom Sims in Frankfurt; Editing by Rachel More, Miranda Murray, Jamie Freed, Elaine Hardcastle
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