KUALA LUMPUR (Aug 4): MPHB Capital Bhd has announced to Bursa Malaysia that it is seeking Bank Negara Malaysia's (BNM) green light to start talks with Generali Asia on the divestment of its 51% stake in MPI Generali.
According to a filing with the local stock exchange today, MPHB Capital's wholly-owned subsidiary Multi-Purpose Capital Holdings Bhd (MPCHB) today submitted another application to the central bank for the approval in principle to commence and enter into negotiations with Generali Asia, which currently holds the remaining 49% stake in MPI Generali.
The latest application was made after MPCHB's application to BNM, which was announced on June 18, for approval to commence and enter into fresh negotiations with Generali Asia in relation to MPCHB's potential disposal of 21% stake in MPI Generali to Generali Asia.
The board, however, noted that MPCHB has yet to receive BNM's decision with regard to the earlier application.
Generali Asia is a subsidiary of Italian Generali Group that acquired the stake from MPHB Capital in 2015. Notably, Generali Asia's put option on its 49% interest in MPI will come into play in May next year, five years after the completion of Generali Asia's 49% stake acquisition in May 2015.
According to MPI's website, the local insurer's core business is underwriting of general insurance business offering innovative insurance products and services which can be customised to the specified needs of individual and corporate customers.
At 4.24pm, shares in MPHB Capital dropped 0.5 sen to 80.5 sen, valuing the counter at RM575.58 million. Year-to-date, the counter has slipped some 23% from RM1.05.
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