KUALA LUMPUR: RHB CAPITAL BHD [] is buying out a 15.2% stake in RHB Insurance Bhd from Nissay Dowa General Insurance Co. Ltd for RM44.49 million.
RHB Capital said on Thursday, Sept 30 it currently held 79.5% of RHB Insurance and upon completion of the proposed acquisition, it would hold 94.7%.
'The Proposed Acquisition will enable RHB Capital to increase its stake in RHB Insurance and further consolidate the results of RHB Insurance in view of the increase in its shareholding from 79.5% to 94.7% of the issued and paid-up share capital of RHB Insurance,' it said.
Based on the audited financial statements of RHB Insurance for the financial year ended Dec 31, 2009, the net profit and net assets were RM34.72 million and RM158.24 million respectively.
RHB Cap said the RM44.49 million purchase price was based on the audited net assets of RHB Insurance as at Dec 31, 2009 of RM158.24 million, representing a price-to-book ratio of approximately 1.85 times; and precedent transactions involving the acquisition of companies predominantly in general insurance businesses.
RHB Capital would use its own funds to finance the proposed acquisition.
Nissay Dowa was established in April 2001 following the merger between The Dowa Fire and Marine Insurance Co., Ltd. and Nissay General Insurance Co., Ltd.
The Dowa Fire and Marine Insurance Co., Ltd. in turn was formed in 1944 through the consolidation of four insurance companies, the oldest of which was established in 1897 while Nissay General Insurance Co., Ltd. was founded in 1996 as a unit of Nippon Life Insurance Co.
Nissay Dowa is now part of a new insurance group under a newly formed holding company MS & AD Insurance Group Holdings, Inc. which came into effect on April 1, 2010.
RHB Capital said on Thursday, Sept 30 it currently held 79.5% of RHB Insurance and upon completion of the proposed acquisition, it would hold 94.7%.
'The Proposed Acquisition will enable RHB Capital to increase its stake in RHB Insurance and further consolidate the results of RHB Insurance in view of the increase in its shareholding from 79.5% to 94.7% of the issued and paid-up share capital of RHB Insurance,' it said.
Based on the audited financial statements of RHB Insurance for the financial year ended Dec 31, 2009, the net profit and net assets were RM34.72 million and RM158.24 million respectively.
RHB Cap said the RM44.49 million purchase price was based on the audited net assets of RHB Insurance as at Dec 31, 2009 of RM158.24 million, representing a price-to-book ratio of approximately 1.85 times; and precedent transactions involving the acquisition of companies predominantly in general insurance businesses.
RHB Capital would use its own funds to finance the proposed acquisition.
Nissay Dowa was established in April 2001 following the merger between The Dowa Fire and Marine Insurance Co., Ltd. and Nissay General Insurance Co., Ltd.
The Dowa Fire and Marine Insurance Co., Ltd. in turn was formed in 1944 through the consolidation of four insurance companies, the oldest of which was established in 1897 while Nissay General Insurance Co., Ltd. was founded in 1996 as a unit of Nippon Life Insurance Co.
Nissay Dowa is now part of a new insurance group under a newly formed holding company MS & AD Insurance Group Holdings, Inc. which came into effect on April 1, 2010.
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