PETALING JAYA: PacificMas Bhd has chosen Canada-based Fairfax Asia Ltd as the buyer for its entire stake in wholly-owned unit The Pacific Insurance Bhd, subject to Bank Negara approval.
It told Bursa Malaysia yesterday that it had informed the other potential buyer, Great Eastern Group, of its intention to discontinue negotiation with the latter.
PacificMas said in May it hoped to conclude the sale of its insurance arm by October, the deadline set by Bank Negara on parent Oversea-Chinese Banking Corp Ltd (OCBC) to divest or merge Pacific Insurance.
In April 2008, Singapore’s OCBC announced the takeover of PacificMas, but on condition that it could not own two insurance companies in Malaysia. As OCBC already owned 87% of Great Eastern in Malaysia, it decided to sell the insurance business of PacificMas, and keep Great Eastern’s general insurance licence held under Overseas Assurance Corp Bhd.