KUALA LUMPUR: Kurnia Asia Bhd has clarified a newspaper report that it is still in talks to dispose of its wholly-owned subsidiary Kurnia Insurans (M) Bhd (KIMB).
“The company is still in negotiations for the possible disposal and hence is unable to comment on the price, the name of the relevant parties or the likelihood of the possible disposal,” it said in a filing with Bursa Malaysia yesterday.
It was reported yesterday that the insurer would likely announce its decision to sell an equity stake in KIMB to Insurance Australia Group (IAG) this week at a price estimated to be 2.5 times to three times of KIMB’s book value.
“We believe one of the key issues regarding the disposal is the stake that is to be sold.
Given that IAG is a foreign company, Kurnia might only be able to dispose of up to 70% of KIMB due to Bank Negara Malaysia’s foreign ownership rules. We value 100% of KIMB at RM1.4 billion to RM1.5 billion,” RHB Research said in a note yesterday.
Kurnia closed 2.5 sen or 4.81% higher at 54.5 sen yesterday with a total of 23.1 million shares changing hands.
Following a report in The Edge, Kurnia had in July announced that it received expressions of interest from certain parties to explore the possibility of acquiring an interest in KIMB.
This article appeared in The Edge Financial Daily, December 15, 2011.
“The company is still in negotiations for the possible disposal and hence is unable to comment on the price, the name of the relevant parties or the likelihood of the possible disposal,” it said in a filing with Bursa Malaysia yesterday.
It was reported yesterday that the insurer would likely announce its decision to sell an equity stake in KIMB to Insurance Australia Group (IAG) this week at a price estimated to be 2.5 times to three times of KIMB’s book value.
“We believe one of the key issues regarding the disposal is the stake that is to be sold.
Given that IAG is a foreign company, Kurnia might only be able to dispose of up to 70% of KIMB due to Bank Negara Malaysia’s foreign ownership rules. We value 100% of KIMB at RM1.4 billion to RM1.5 billion,” RHB Research said in a note yesterday.
Kurnia closed 2.5 sen or 4.81% higher at 54.5 sen yesterday with a total of 23.1 million shares changing hands.
Following a report in The Edge, Kurnia had in July announced that it received expressions of interest from certain parties to explore the possibility of acquiring an interest in KIMB.
This article appeared in The Edge Financial Daily, December 15, 2011.
