KUALA LUMPUR: BIMB Holdings Bhd has been given approval by the central bank to start negotiations with Abu Dhabi-Kuwait-Malaysia Strategic Investment Corporation (ADKM) for a strategic stake in Syarikat Takaful Malaysia Bhd (Takaful Malaysia).
In an announcement to Bursa Malaysia yesterday, BIMB said the strategic stake would not exceed 49%.
ADKM, via its 51% owned Swan Symphony Sdn Bhd, is also a major shareholder of Putrajaya Perdana Bhd.
In October and November last year, it was Takaful Malaysia that announced that it had received the central bank’s approval to start talks with ADKM and Islamic Arab Insurance Co PJSC (Salama), respectively. It was subsequently reported that the potential investors might acquire up to a 49% stake in Takaful Malaysia.
Takaful Malaysia has been on the lookout for a partner to inject capital into the company since September last year as it has been looking to expand regionally.
It was reported earlier this week that BIMB was planning to take Takaful Malaysia private as part of its strategy to restructure its asset management and Islamic insurance businesses.
BIMB, which holds a 66.06% stake in Takaful Malaysia, however, denied such a move following the report. The Employees Provident Fund Board has a 4.5% stake in Takaful Malaysia.
According to The Edge Financial Daily report, investors from the Middle East would be invited to take up a strategic stake in the insurer.
Takaful Malaysia is thought off as an attractive privatisation target, given that it is trading below its net book value, according to reports.
Takaful Malaysia has operations in Labuan through Asean Retakaful International (L) Ltd and in Indonesia via P T Syarikat Takaful Indonesia.
The Islamic insurer, which has more than 120 branches in Malaysia, is attractive to Middle East investors mainly because of its first-mover’s advantage in the local takaful business. Incorporated in 1984, Takaful Malaysia was the first takaful operator in the country and the first retakaful company in the world.
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