KUALA LUMPUR (Nov 5): MPHB Capital Bhd’s proposed disposal of a 49% stake in insurance firm Multi-Purpose Insurans Bhd (MPIB) has been approved by Bank Negara Malaysia.

Multi-Purpose Capital Holdings Bhd (MPCHB), a wholly-owned unit of MPHB Cap, will sell its 49% stake, or 49 million shares, in MPIB disposed to an unrevealed interested party.

Bank Negara granted the approval, via a letter dated today, which also approved the grant of options to the interested party by MPCHB.

The central bank said it required new applications to be submitted from both parties, prior to exercising the call option or put option.

In January this year, MPHB Cap announced it had received interest to explore forming a ‘strategic alliance’ with MPIB.

MPHB Cap dropped six sen or 2.54% to RM2.30, giving it a market capitalisation of RM1.64 billion.