KUALA LUMPUR – British insurer Prudential has reached an out-of-court settlement to resolve a long-standing shareholding dispute with its former Malaysian partners, led by prominent businessman Vincent Tan Chee Yioun of the Berjaya Group and members of Johor’s royal family.
Sources familiar with the deal told CNA that Prudential will acquire an additional 19% stake in Prudential Assurance Malaysia Berhad (PAMB) from Detik Ria, a Malaysian firm controlled by Tan. The multi-million dollar transaction, concluded last week, is still subject to regulatory approvals from Malaysia’s Ministry of Finance and central bank, Bank Negara Malaysia.
Once approved, Prudential’s stake in PAMB will rise from 51% to 70%, the maximum allowed for foreign ownership under Malaysian rules.
The agreement brings to a close a legal dispute that began in 2019 over shareholding issues and more recently, dividend payments. Detik Ria will retain a 30% stake in PAMB for now but is reportedly in talks with local institutional investors to exit entirely.
While pricing details remain under wraps, two financial executives estimated the deal’s value—factoring in the settlement over dividend disputes—could exceed RM850 million (US$201 million) for Tan and his associates.
“This brings an end to all litigation. Both parties have resolved the matters tied to the joint venture,” said a senior financial executive close to the Berjaya founder.
Though earlier media reports covered the shareholder row, this latest settlement and Detik Ria’s plan to divest its remaining shares in PAMB have not been previously disclosed.
Tan declined to comment. However, sources close to him said a public announcement would follow once regulatory approvals are secured. Prudential has also not responded to queries about its plan to raise its PAMB stake to 70%.
If approved, the deal would give Prudential firmer control over its Malaysian operations.
A senior Prudential executive based in London suggested to CNA last week that a full settlement with Detik Ria was imminent.
The conflict traces back to 2018 when Detik Ria attempted to reverse a 2008 agreement to sell its entire stake in PAMB to Prudential. By then, Detik Ria had already received RM109 million of the agreed RM114 million sale price. Prudential sued to enforce the agreement and initially won in the High Court and Court of Appeal.
However, in July 2024, Malaysia’s Federal Court ruled that the agreement was invalid without Ministry of Finance approval. Prudential’s appeal for a review—arguing procedural impropriety and denial of justice—was rejected in June.
In April, Detik Ria launched a countersuit seeking US$833 million in disputed dividends. That dispute was resolved last week with Prudential agreeing to pay US$83 million to Detik Ria and waiving a US$33 million debt owed by the Malaysian firm. The insurer described the resolution as “full and final.”
“The settlement does not affect Prudential’s operational control of PAMB or its service commitments in Malaysia,” the company said in a statement.
It remains unclear why Detik Ria settled for only 10% of the amount it initially claimed.
Century-Old Legacy and Complex Corporate Structure
The resolution concludes one of Malaysia’s most protracted and closely watched corporate battles, marked by regulatory grey areas and legal ambiguity in foreign-local joint ventures.
Prudential, listed in both the UK and Hong Kong, began operating in then-British Malaya in 1924. In 2002, it partnered with Detik Ria to comply with Malaysia’s local ownership rules under the New Economic Policy, which aimed to allocate at least 30% of corporate equity to bumiputras—ethnic Malays and indigenous peoples.
Vincent Tan, known for his strong political connections during the premiership of Mahathir Mohamad, was selected as Prudential’s local partner. By then, Tan had built Berjaya into one of Malaysia’s largest conglomerates with holdings in property, telecoms, hospitality, gaming, and retail.
Berjaya, still led by Tan, recently won the licence to develop Malaysia’s second 5G network.
The joint venture with Prudential was structured through a private company, Sri Han Suria, with Prudential holding 51% and Detik Ria the remaining 49%. Detik Ria’s shareholders include Tan and close associates, as well as Persada Majestik—a firm fully owned by Tunku Tun Aminah Sultan Ibrahim, daughter of Malaysia’s current king and Johor’s royal head, Sultan Ibrahim Sultan Iskandar.
