KUALA LUMPUR (Dec 12): RHB Bank Bhd, Malaysia's fourth-biggest lender by assets, 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.
"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 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.
Reuters reported in 2016 that Tokio Marine, which already runs its own life and general insurance businesses in Southeast Asia's third-biggest economy, could buy out RHB Insurance for as much as US$500 million.
RHB Insurance had total assets of RM1.78 billion (US$426.86 million) and liabilities of RM1.2 billion as of last year. It is the 10th largest insurer in Malaysia with a 4.4% market share, according to RHB Bank's 2018 annual report.
(US$1 = RM4.1700)