SINGAPORE (July 28): Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) has emerged as the preferred bidder to buy MNRB Holdings Bhd’s (KL:MNRB) Islamic insurance unit Takaful Ikhlas, according to people with knowledge of the matter.

The parties are hammering out details of a deal and may seek approval from Malaysia’s central bank by the end of this month, said the people, asking not to be identified because the process is private. Bank Rakyat has emerged as the likeliest buyer for the asset after outbidding other industry players, the people said.

Discussions are ongoing and MNRB could still opt to keep Takaful Ikhlas, the people said.

A spokesperson for MNRB said the firm continually reviews its strategic investments as part of normal capital and portfolio management process to optimise shareholders’ returns.

Bank Rakyat and Bank Negara Malaysia, the country’s central bank, didn’t immediately respond to a request seeking comment outside business hours.

MNRB last year reached out to insurers and private equity firms to gauge interest in Takaful Ikhlas, people familiar with the matter said at the time. The reinsurer, backed by state-owned asset manager Permodalan Nasional Bhd, was seeking about RM1 billion for the business, the people said.

Founded in 2002, Takaful Ikhlas offers insurance products that comply with Islamic principles and has about two million policy holders and more than 5,000 agents, MNRB’s website shows.

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