KUALA LUMPUR: CIMB Group Holdings Bhd’s (CIMB) wholly-owned indirect subsidiary CIG Bhd will divest its 51 per cent stake in CIMB Howden Insurance Brokers Sdn Bhd (CHIB) to HBG Asia Holdings Ltd (Howden).
In a filing with Bursa Malaysia today, CIMB said the stake, comprising 510,000 shares, would be sold for RM59.6 million.
“Approval from Bank Negara Malaysia for the disposal was received on Nov 27, 2018.
“The disposal was in line with the group’s aspirations to further streamline and focus on its core banking businesses,” it said.
CIMB said the disposal was not expected to have any material effect on the group’s consolidated net assets and earnings.
“Following the disposal, CHIB will cease to be an associate company of CIG,” it added.