MPHB Capital unit to sell 51pc stake in MPI Generali
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 to Generali Asia for RM485 million.
“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 deal 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
and expiring on June 30, and subject to a further extension of up to Aug 31).
MPHB Capital said it believed that the proposed disposal provided an opportunity to unlock and realise the value of its investment in MPI Generali.
However, on its listing status, MPHB Capital said it would consult with Bursa Malaysia on the matter as MPI Generali contributed 95 per cent of its revenue.
According to Bursa Malaysia regulations, a listed corporation must maintain an adequate level of operations to warrant continued trading or listing on the Main Market.
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 a 2.95 per equity interest in AXA Affin General Insurance Bhd (AAGI).
In a filing with Bursa Malaysia, the bank said it would 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 and 49.99 per cent equity interest in AALI and AAGI, respectively.