By Jason Ng
KUALA LUMPUR--MPHB Capital Bhd (5237.KU) said it is selling a
49% stake in its wholly-owned general insurance unit to Italy's
Assicurazioni Generali S.p.A. (G.MI) for 355.8 million ringgit
($102.4 million).
The proposed sale of the Multi-Purpose Insurans Bhd stake, still
subject to shareholders' approval, will result in a gain of about
208.6 million ringgit, MPHB said in an exchange filing late
Thursday. The deal is expected to be completed by early 2015, it
noted.
Assicurazioni also has a call option to buy another up to 21%
stake in Multi-Purpose Insurans. Assicurazioni also signed a put
option to sell shares in Multi-Purpose Insurans if the company
fails to secure regulatory approval for the call option or secure a
controlling stake after five years of owning the shares.
The entry of Assicurazioni is expected to "bring Multi-Purpose
Insurans's general insurance business to the next level of growth
amid a competitive landscape," MPHB said, adding that the sale is
also part of its plan to comply with the regulator's conditions on
shareholding limits.
MPHB appointed Maybank Investment Bank Bhd as principal advisor
and Newfields Advisors Sdn Bhd as financial advisor.
Write to Jason Ng in Kuala Lumpur at jason.ng@wsj.com
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