CIMB divests insurance broking business for RM59.6m
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CIMB Group Holdings Bhd’s wholly-owned indirect subsidiary CIG Bhd yesterday entered into a share purchase agreement with HBG Asia Holdings Ltd and HBG Malaysia Sdn Bhd (Howden) to divest its remaining 51% stake in CIMB Howden Insurance Brokers Sdn Bhd (CHIB) to Howden for RM59.6 million.
The group said approval from Bank Negara Malaysia in relation to the proposed divestment was received by Howden on Nov 27, 2018.
“CHIB currently operates an insurance broking business and the proposed divestment is in line with CIMB’s aspirations to further streamline and focus on its core banking businesses. As part of the proposed divestment, CHIB will cease to be an associate of CIG,“ CIMB said.
Questions & Answers
Q.Which company is acquiring the remaining stake in CIMB Howden Insurance Brokers Sdn Bhd?
Which company is acquiring the remaining stake in CIMB Howden Insurance Brokers Sdn Bhd?
HBG Asia Holdings Ltd and HBG Malaysia Sdn Bhd, collectively referred to as Howden, are purchasing the remaining 51% stake. This acquisition means they will fully own CIMB Howden Insurance Brokers Sdn Bhd.
Q.What was the sale price for the 51% stake in CIMB Howden Insurance Brokers Sdn Bhd?
What was the sale price for the 51% stake in CIMB Howden Insurance Brokers Sdn Bhd?
The divestment of the remaining 51% stake in CIMB Howden Insurance Brokers Sdn Bhd was agreed for a sum of RM59.6 million. This figure represents the total value of the transaction.
Q.What is CIMB's stated reason for divesting its insurance broking business?
What is CIMB's stated reason for divesting its insurance broking business?
CIMB stated that the divestment aligns with its ambition to streamline operations and concentrate on its core banking businesses. This strategic move allows the group to refocus its resources.
Q.When was regulatory approval for this divestment received?
When was regulatory approval for this divestment received?
Approval from Bank Negara Malaysia for the proposed divestment was received by Howden on November 27, 2018. This regulatory clearance paved the way for the transaction to proceed.