The week That Was - AMMB, CTOS, Bitcoin,


Bitcoins

AMMB in RM2.29bil deal

AMMB on Monday said a 51% owned unit is selling its general insurance business to Liberty Insurance Bhd for RM2.29bil in a cash and shares deal.

The deal, which is pending regulatory approvals, would see AMMB hold a 30% stake each in AmGeneral Insurance Bhd and Liberty Insurance.

The two insurers would be subsequently merged into a single entity.

Analysts said AMMB could potentially pocket around RM300mil to RM400mil in a one-time gain from the disposal, but the reduced stake would also result in lower contribution from its general insurance business.

AMMB is also likely to keep the cash proceeds to boost its capital ratio rather than pay it out as a special dividend.

Meanwhile, Liberty Insurance is the local unit of Liberty Mutual, a United States-based insurance provider and is ranked the sixth largest global property and casualty insurer.

It acquired Uni.Asia General Insurance Bhd in 2014, before changing its name to Liberty Insurance Bhd in 2015.

Memorable debut for CTOS

CTOS Digital Bhd, the biggest initial public offering (IPO) on Bursa Malaysia so far this year made a strong debut on Monday.

The stock ended its maiden day at RM1.62, up 47% over its issue price of RM1.10 a share.

CTOS said the retail portion attracted RM1.38bil bids chasing RM48.4mil worth of shares offered, the largest retail demand for an IPO since 2013.

The listing raised RM1.2bil.

CTOS IPO - filepicCTOS IPO - filepic

Homegrown private equity firm Creador Sdn Bhd had first invested in CTOS back in 2015 and has been its largest shareholder with an 80% stake. The firm sold half of its holdings via the IPO, which would halve its stake to around 40% post-listing, and net the fund proceeds of around RM792mil.

CTOS is Creador’s second big-size offering following the successful listing of MR DIY Group (M) Bhd in October last year.


Bitcoin dips below US$30,000

BITCOIN and other cryptocurrencies rebounded on Wednesday after a sell-off, with the world’s biggest digital coin climbing back above US$30,000 (RM123,000).

The price of bitcoin surged to US$32,765 (RM134,336) Wednesday, up by about 7% up on the day. Smaller cryptocurrencies ether and XRP also rebounded about 6% each.

Bitcoin was hovering around US$32,000 (RM131,200) in early Thursday.

The crypto market saw heavy selling on Tuesday, with bitcoin falling below the US$30,000 (RM123,000) mark for the first time since June 22.

At a crypto conference on Wednesday, Elon Musk said his companies Tesla and SpaceX, as well as himself, own bitcoin.

Though Tesla no longer allows people to pay for cars using bitcoin, the automaker hasn’t sold its bitcoin, Musk said.

“We’re not selling any bitcoin, nor am I selling anything personally or nor is SpaceX selling any bitcoin,” he was quoted as saying.

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