KUALA LUMPUR (Aug 4): MNRB Holdings Bhd (KL:MNRB) is selling its takaful business to development financial institution Bank Kerjasama Rakyat Malaysia Bhd, better known as Bank Rakyat, for RM1.64 billion cash.
In a filing with Bursa Malaysia, MNRB said it has signed an implementation agreement with Rakyat Nominees Sdn Bhd and Bank Rakyat for the proposed sale of its takaful subsidiaries, Takaful Ikhlas Family and Takaful Ikhlas General.
The deal remains subject to regulatory approval, with final sale agreements to be signed later, within a 12-month period.
Aside from approvals from Bank Negara Malaysia, the proposed disposal is also subject to approval from the Minister of Entrepreneur and Cooperatives Development as well as MNRB’s shareholders at an extraordinary general meeting to be convened.
The divestment consideration is subject to adjustments. No valuation was provided for the proposed deal.
According to MNRB’s 2026 annual report however Takaful Ikhlas General posted a profit after tax (PAT) of RM82.8 million for the financial year ended March 31, 2026 (FY2026), while Takaful Ikhlas Family logged RM25.5 million. Based on their combined FY2026 earnings, the RM1.64 billion deal values the two takaful businesses at about 15.1 times earnings.
MNRB said the proposed divestment comes as the group aims to further strengthen and sharpen its focus on its core reinsurance and retakaful business.
“The company believes that the proposed divestment will position the group to remain focused on opportunities that support its long-term strategic priorities and is aligned with its broader ambition to contribute to the continued development of Malaysia's Islamic financial services landscape,” MNRB said in a bourse filing on Tuesday.
The planned divestment is a continuation of MNRB’s broader strategic journey, chairman Datuk Sulaiman Mohd Tahir noted.
In May this year, MNRB announced its plan to acquire the remaining 80% in offshore reinsurer Labuan Reinsurance (L) Ltd for US$100.69 million (RM400.49 million) cash in a related-party deal.
Bank Rakyat in a separate statement said the proposed acquisition aims to expand its Shariah-compliant financial services by adding takaful solutions to its existing banking offerings. The move is part of its strategy to become a leading Islamic financial group while strengthening support for individuals, businesses, cooperatives and MSMEs.
“As the nation’s largest Islamic cooperative bank, we have a responsibility to contribute to nation-building by supporting sustainable socio-economic development. This investment reinforces our mandate to serve cooperatives and micro, small and medium enterprises (MSMEs), while expanding financial inclusion and strengthening protection for households and businesses. It also facilitates new strategies for cooperative development that create long-term value across Malaysia’s cooperative and MSME ecosystem,” Bank Rakyat chairman Datuk Mohd Irwan Mohd Mubarak said in the statement.
Shares of MNRB ended three sen or 1.11% lower at RM2.68, valuing the group at RM2.1 billion.