This article first appeared in The Edge Financial Daily on January 24, 2019

KUALA LUMPUR: CIMB Group Holdings Bhd is selling its indirect 51% equity interest in insurance broker CIMB Howden Insurance Brokers Sdn Bhd to its partner HBG Malaysia Sdn Bhd (Howden) for RM59.6 million.

CIMB said the proposed divestment is in line with the group's aspirations to further streamline and focus on its core banking businesses.

In a filing with Bursa Malaysia yesterday, CIMB said its indirect wholly-owned unit CIG Bhd has entered into a share purchase agreement with Hong Kong’s HBG Asia Holdings Ltd and Howden to divest 510,000 shares, or a 51% stake, in CIMB Howden to Howden.

Approval from Bank Negara Malaysia in relation to the proposed divestment was received by Howden on Nov 27, 2018, it added.

Upon completion of the proposed divestment, CIMB Howden will cease to be an associate of CIG.

“The proposed divestment does not have any material effect on CIMB’s consolidated net assets and earnings, and does not have any effect on CIMB’s share capital and substantial shareholders’ shareholdings for the financial year ended Dec 31, 2018,” said the group.

On Jan 7, 2015, CIMB had disposed of 490,000 shares, or a 49% stake, in CIMB Howden, then known as CIMB Insurance Brokers Sdn Bhd, to HBG Asia for RM33.32 million cash.