DRB-HICOM is seeking approval from Malaysia's minister of finance for its proposal to sell its 51% shares of Uni Asia Life Assurance Bhd for $158.10 million in cash or RM518 million.
The central bank of Malaysia recently gave DRB-HICOM the go signal to begin negotiations for the planned UAC sale with a yet unidentified company owned by Prudential Insurance Company of America and Malaysia's Bank Simpanan Nasional on a shareholding basis of 70:30.
According to major reports, analysts speculate that the move to dispose Uni Asia Life Assurance, one of the country's small life insurers, is intended to help turn around the Malaysian auto-to-property conglomerate's decline in market share value. The RM3.02 billion purchase of Proton Holdings in 2012 caused DRB-HICOM to incur debt.
DRB-HICOM had maintained their goal to achieve the company's twelve-month target of increasing the value of their stock shares, of which has begun to rise by 3% in this morning's exchange after the announcement.
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