RHB Plans To Dispose Insurance Arm

RHB Bank Bhd has received the approval from Bank Negara Malaysia to start negotiations for the proposed sale of its general insurance business to Tokio Marine Asia Pte Ltd.

It said on Wednesday the central bank stated that “it has no objection for the company to commence negotiations with Tokio Marine in relation to the proposed disposal of up to 94.7% of its equity interest in RHB Insurance”.

The approval is valid for six months from the date of BNM’s letter dated July 29.

“Pursuant to the Financial Services Act 2013, the relevant parties will be required to obtain the prior approval of the Minister of Finance, with the recommendation of Bank Negara, before entering into any definitive agreement to effect the proposed disposal,” it said..

RHB Bank said a detailed announcement on the proposed disposal would be made when the agreement was signed.

Earlier today, Bursa Securities suspended trading in shares of RHB Bank Bhd pending the announcement.

"The request for suspension is made under Paragraph 3.1(b) of Practice Note 2 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, pending a material announcement to be released by the Company," it said.