RHB Bank up 1.6% on ending talks to sell insurance unit to Tokio Marine

RHB Bank up 1.6% on ending talks to sell insurance unit to Tokio Marine
-A +A

KUALA LUMPUR (Dec 13): Shares in RHB Bank Bhd, Malaysia's fourth-biggest lender by assets, rose 1.6% at mid-morning today after it said on Thursday it had called off talks to sell up to 94.7% of its shares in RHB Insurance to Tokio Marine Asia (TMA), a unit of Japan's Tokio Marine Holdings Inc.

At 10.26am, RHB Bank rose 9 sen to RM5.71, valuing it at RM22.89 billion.

"RHB Bank wishes to announce that after much negotiations and deliberations, both the company and TMA have not been able to reach an agreement on mutually acceptable terms and conditions for the proposed disposal," RHB Bank said.

"Accordingly, RHB Bank and TMA have mutually agreed to cease negotiations, and will not proceed with the proposed disposal."

RHB Bank first announced the talks in July and had expected to close a deal in the first quarter of next year.

Read also: RHB Bank ends talks to sell insurance unit to Tokio Marine