RHB Bank Bhd has received approval from Bank Negara Malaysia (BNM) to extend negotiations with Tokio Marine Asia Pte Ltd over a proposed insurance business transaction until 11 February 2027. The negotiations relate to the proposed disposal of up to 100% equity interest in RHB Insurance Bhd.
The bank said in a filing with Bursa Malaysia that BNM granted the extension in a letter dated 21 October, following its application on 16 October. RHB Bank is Malaysia's fourth-largest bank by assets.
DISPOSAL AND INTEGRATION UNDER DISCUSSION
The negotiations also relate to the proposed integration of Tokio Marine Insurans (Malaysia) Bhd and RHB Insurance into an enlarged entity. Under the proposal, RHB Bank would retain an equity interest of up to 35% in the integrated entity.
Under the proposal, Tokio Marine Insurans (Malaysia) Bhd and RHB Insurance would be integrated into an enlarged entity, in which RHB Bank would retain an equity interest of up to 35%.
VALUATION AND FOREIGN OWNERSHIP LIMIT
Maybank Investment Bank put the price of a 100% stake in RHB Insurance at roughly RM1.05 billion, based on a price-to-book value of 1.4 times.
For Tokio Marine, the deal would help address regulatory limits in Malaysia, where foreign companies can own only up to 70% of a domestic insurer, Maybank Investment Bank noted.
PROGRESS SINCE THE FIRST APPROVAL
BNM first granted approval on 11 May 2026 for RHB Bank to commence negotiations with Tokio Marine Asia. The extension now moves the negotiating deadline to 11 February 2027.
RHB Bank had previously said both parties had made meaningful progress in discussions. These included ongoing due diligence reviews and negotiations on key commercial terms and transaction documentation.
A SIMILAR PLAN FAILED IN 2019
RHB Bank and Tokio Marine first explored a similar transaction in July 2019 but abandoned the plan in December that year. They failed to reach an agreement on the terms of the proposed disposal.