CIMB ANNOUNCES ESTIMATED RM515 MILLION GAIN IN DISPOSAL OF INSURANCE UNITS
CIMB Group Holdings Bhd (CIMB) has a potential to reap RM515.1 million from the disposal of its 51% stake in insurance units CIMB Aviva Assurance Bhd and CIMB Aviva Takaful Bhd (both referred to as CIMB Aviva). The group received Bank Negara Malaysia’s approval for the disposal of CIMB Aviva (which was first announced on 17 January 2013) to Khazanah Nasional Bhd’s subsidiary Renggis Ventures Sdn Bhd (Renggis). The purchase consideration remains unchanged at RM1.11 billion for CIMB’s 51% ownership, to be fulfilled with RM1,066.5 million in cash and RM43.5 million ordinary shares in Renggis. As a result, CIMB will maintain an effective 2% stake in CIMB Aviva. The insurance units are 51%-owned by CIMB, while the remaining 49% was held by Aviva International Holdings Ltd (Aviva).