KUALA LUMPUR, Aug 4 (Bernama) -- MNRB Holdings Bhd has proposed to divest its 100 per cent equity interest in its wholly-owned units, Takaful Ikhlas Family Bhd (Takaful IKHLAS Family) and Takaful Ikhlas General Bhd (Takaful IKHLAS General), to Rakyat Nominees Sdn Bhd for RM1.64 billion in cash, subject to adjustments.
In a filing with Bursa Malaysia today, MNRB said it had entered into an implementation agreement (IA) with Rakyat Nominees and Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) in relation to the proposed divestment.
Bank Rakyat is the sole shareholder of Rakyat Nominees.
MNRB said the proposed divestment would unlock the value of its investments in the direct and primary takaful segments, allowing the group to strengthen further and sharpen its focus on its core reinsurance and retakaful businesses.
"The company believes that the proposed divestment will position the MNRB 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," it said.
Upon completion of the proposed divestment, Takaful IKHLAS Family and Takaful IKHLAS General will cease to be wholly-owned subsidiaries of the company, it added.
In a separate statement, MNRB chairman Datuk Sulaiman Mohd Tahir said the exercise is part of the company’s long-term strategy, as MNRB continually reviews its investment portfolio to ensure its businesses and resources remain aligned with its long-term strategic priorities.
“We believe this proposed divestment presents an opportunity to build on complementary strengths and support the continued growth of Takaful IKHLAS.
“The group will continue to manage the process carefully and responsibly, with due consideration to the interests of our shareholders, customers, employees and other stakeholders,” he said.
-- BERNAMA