Toronto-based Fairfax Financial Holdings Ltd. says it has, through its wholly owned subsidiary Fairfax Asia Ltd., entered into a share purchase agreement to acquire 80% of PT Batavia Mitratama Insurance (Batavia), an Indonesian insurer.
The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2014. Financial terms were not disclosed.
Batavia is a general insurance company, based in Jakarta, Indonesia, specializing in vehicle coverage. The acquisition is fully financed by Fairfax Asia and, on closing, Batavia will join the Fairfax Asia group under the leadership of its CEO, Ramaswamy Athappan.
“Batavia has a strong presence in the Indonesian insurance sector and this is a fantastic opportunity for us to expand our operations in the region.” said Prem Watsa, Chairman and CEO of Fairfax (TSX:FFH).
Fairfax is a financial services holding company, which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.