KUALA LUMPUR (Oct 22): RHB Bank Bhd (KL:RHBBANK) secured an extension from the regulator to finalise talks with Japan’s Tokio Marine on the merger of their general insurance businesses in Malaysia.
The extension granted by Bank Negara Malaysia will be until Feb 11, 2027, the country’s fourth-largest bank by assets said in a bourse filing on Thursday. RHB had requested for additional time to conclude the discussions last week.
The proposed transaction involves RHB selling up to its 100% stake in RHB Insurance Bhd to Tokio Marine. The unit will then be combined with Tokio Marine Insurans (Malaysia) Bhd to form a larger insurance entity.
Under the proposed arrangement, RHB would retain an equity interest of up to 35% in the merged entity.
On Oct 16, RHB said negotiations had progressed as both parties continued their due diligence exercises and discussions on commercial terms and transaction documents.
Malaysia’s central bank, which regulates both the banking and insurance industries, had initially given its approval in May for the parties to revive negotiations over the proposed merger.
RHB and Tokio Marine first explored a similar transaction in July 2019 but abandoned the plan in December that year after failing to reach an agreement on the terms of the proposed disposal.
At the noon break on Thursday, shares of RHB were down by six sen or 0.81% to RM7.31. At its last price, the bank was valued at nearly RM32 billion.