BNM greenlights RHB-Tokio Marine insurance biz sale talks

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KUALA LUMPUR (July 31): Bank Negara Malaysia (BNM) has given RHB Bank Bhd permission to commence negotiations with Tokio Marine Asia Pte Ltd to dispose of up to 94.7% stake in RHB Insurance.

This confirms an earlier report by theedgemarkets.com citing sources as saying RHB Bank was due to make an announcement about an asset disposal, with its insurance business most likely the target of its divestment.

In a filing with Bursa Malaysia today, RHB Bank said it has obtained a six-month approval from the central bank to embark on talks in a letter dated July 29.

"Pursuant to the Financial Services Act 2013, the relevant parties will be required to obtain the prior approval of the Minister of Finance, with the recommendation of Bank Negara, before entering into any definitive agreement to effect the proposed disposal.

"Accordingly, a detailed announcement on the proposed disposal will be made upon execution of the definitive agreement(s) for the proposed disposal," the filing read.

Trading in RHB Bank shares was suspended this morning pending a material announcement, and will resume at 2.30pm today.

"Accordingly, trading in all structured warrants relating to RHBBANK will also resume at the same time," said the bank in a separate Bursa filing.

The stock closed 21 sen or 3.72% lower at RM5.44 on Monday, giving it a market capitalisation of RM21.82 billion.

See also: RHB Bank share trade suspended on an asset disposal announcement?