MPMB Capital unit to sell remaining 51 per cent stake in MPI Generali for RM485 million

KUALA LUMPUR: MPHB Capital Bhd’s wholly-owned subsidiary Multi-Purpose Capital Holdings Bhd (MPCHB) has agreed to sell its 51 per cent equity interest in MPI Generali Insurans Bhd for RM485 million to Generali Asia.

“MPHB and its subsidiaries are currently involved in the underwriting of general insurance business, provision of general loan financing services and property investment and management.

“The proposed disposal entails the disposal of MPHB Group’s entire general insurance business via the disposal of MPCHB’s remaining 51 per cent equity interest in MPI Generali,” it said in a stock exchange filing.

Generali Asia and MPCHB have agreed that the purchase price will be adjusted if completion of the deal occurred during the extended completion period (being the period commencing on Jan 1, 2022 and expiring on June 30, 2022, and subject to a further extension of up to Aug 31, 2022).

MPHB Capital said it believes that the proposed disposal provides an opportunity for the company to unlock and realise the value of its investment in MPI Generali.

However, on its listing status, MPHB said it would seek consultation with Bursa Malaysia on the matter as MPI Generali contributed 95.0 per cent of its revenue.

According to Bursa Malaysia, a listed corporation must maintain an adequate level of operations to warrant continued trading or listing on the Main Market of Bursa Malaysia.

Meanwhile, Affin Bank Bhd has sealed a share sale agreement (SSA) with Generali Asia N.V. to dispose of a 21 per cent stake in AXA Affin Life Insurance Bhd (AALI) and 2.95 per equity interest in AXA

Affin General Insurance Bhd (AAGI).

In a filing with Bursa Malaysia today, the bank said it will dispose of AALI and AAGI to Generali Asia for a cash consideration of RM70.79 million and RM84.75 million, respectively, subject to adjustments.

Simultaneous with the execution of the Affin SSA, Generali Asia also executed a separate SSA with the National Mutual International Pty Ltd and AXA Asia for the acquisition of 49 per cent and 49.99 per cent equity interest in AALI and AAGI, respectively. — Bernama