Billionaire Syed Mokhtar Al-Bukhary’s DRB-Hicom Bhd may sell its stakes in Uni.Asia Life Assurance Bhd and Uni.Asia General Insurance Bhd, three people with knowledge of the matter said.
Singapore’s United Overseas Bank Ltd owns the rest of the two companies and may also sell its stakes, said the people, who asked not to be named because the process is confidential.
DRB’s 51 per cent stake in Uni.Asia Life is valued at RM149 million (US$49 million), while its 34.7 per cent stake in Uni.Asia General is worth RM107 million, according to a November research report by Hong Leong Investment Bank.
Selangor-based DRB’s debt-to-equity ratio jumped to 22 times as of Dec 31, from 14 times three months earlier, according to data compiled by Bloomberg.
Uni.Asia Life, which appointed a new chief executive officer in January, had assets of RM2.2 billion as of March 31, 2011, according to its annual report. The insurer’s profit fell 15 per cent that fiscal year.
Uni.Asia General, whose assets stood at RM1.1 billion a year ago, posted a profit of RM36.2 million for fiscal 2011, compared with a loss for the previous year.
In January, DRB bought 42.7 per cent of carmaker Proton Holdings Bhd. from state-run investment fund Khazanah Nasional Bhd for RM1.29 billion. DRB said at the time it may use internal funds or borrow money to finance the purchase.
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