RHB seeks extension for insurance merger talks with Tokio Marine
The proposal would see RHB sell up to 100% of RHB Insurance and hold up to 35% of the enlarged company.
RHB Bank Bhd has asked Bank Negara Malaysia (BNM) to extend the time available for negotiations with Tokio Marine Asia Pte Ltd over a proposed combination of their Malaysian insurance businesses, the bank said on Oct 16.
RHB told the stock exchange that negotiations had progressed meaningfully. Due diligence remains under way, alongside discussions covering the main commercial terms and documents for the transaction.
BNM gave RHB permission in May to begin a second round of negotiations. The plan involves combining RHB Insurance Bhd with Tokio Marine Insurans (Malaysia) Bhd. RHB would sell up to 100% of its RHB Insurance stake to Tokio Marine Asia and hold up to 35% of the combined insurer.
An earlier effort was announced in July 2019 following regulatory approval. Those discussions ended in December that year because the parties could not reach agreement on the disposal terms and conditions.
RHB shares finished at RM7.32, gaining four sen or 0.55%, with the bank valued at RM32 billion. The stock has risen 8.44% over the past one year.
