KUALA LUMPUR: RHB Bank
Bhd has received approval from Bank Negara Malaysia to commence negotiations with Tokio Marine Asia Pte Ltd for the proposed disposal of up to its entire stake in RHB Insurance Bhd.
In a filing with Bursa Malaysia, RHB Bank said the proposed transaction would involve the integration of Tokio Marine Insurans (M) Bhd and RHB Insurance into an enlarged integrated entity, in which RHB Bank would hold up to a 35% stake.
The bank said Bank Negara, via a letter dated May 11, stated that it had no objection to RHB Bank beginning negotiations, subject to all parties concluding discussions within six months.
RHB Bank said the relevant parties would still need to obtain prior approval from the Minister of Finance, upon recommendation by Bank Negara, before entering into any definitive agreements for the proposed transaction.
