Tune Ins’ purchase price for Asuransi ‘reasonable’

A file picture showing Tune ins CEO Junior Cho. CiMB research says the deal in Indonesia can bring about a potential re-rating catalyst.

PETALING JAYA: Despite the high valuations, the price that Tune Ins Holdings Bhd has to pay for a majority stake in Indonesian insurer PT Asuransi Staco Mandiri (ASM) is considered reasonable, as the deal would enable the former to gain a foothold in the largest market in South-East Asia, according to CIMB Research.

In its report published yesterday, the brokerage said that the deal would also present strong potential for Tune Ins to add value to ASM in order to enhance its earnings in the longer term.