CIG, a wholly-owned indirect subsidiary of CIMB Group, has signed an agreement to divest its remaining 51% stake in insurance broker CIMB Howden Insurance Brokers (CHIB) to its partner HBG Malaysia for MYR59.6m ($14.4m).
The Malaysian bank said that the proposed sale is part of its strategy to streamline and focus on its core banking operations.
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CIMB in a stock exchange filing said that the share purchase agreement with Hong Kong’s HBG Asia and Howden was signed by its indirect wholly-owned subsidiary CIG.
Following completion of the proposed divestment, CHIB will cease to be an associate of CIG.
Bank Negara Malaysia granted approval for the proposed divestment in November last year.
“The proposed divestment does not have any material effect on CIMB’s consolidated net assets and earnings, and does not have any effect on CIMB’s share capital and substantial shareholders’ shareholdings for the financial year ended 31 December 2018,” CIMB Group added.
In January 2015, CIMB offloaded a 49% stake in CIMB Howden, then known as CIMB Insurance Brokers, to HBG Asia in a cash transaction worth MYR33.32m ($8.05m).
