Prudential Malaysia unit in talks with pension fund KWAP to sell 30pc stake

HONG KONG, March 7 — British insurer Prudential PLC is in advanced talks with Malaysia's No. 2 pension fund to sell a 30-per-cent stake, valued at about US$435 million (RM1.7 billion), in its Malaysian unit to comply with new foreign ownership rules, people familiar with the matter said.

Foreign insurers are scrambling to trim their stakes in their local units to 30 per cent to abide by a directive from Malaysia's central bank, under an initiative to lift domestic participation in the industry.

Prudential Assurance Malaysia Berhad is a wholly-owned life insurance unit of Britain's largest insurer by assets. It is one of the leading foreign insurers in the South-east Asian country.

The British insurer's talks with retirement fund Kumpulan Wang Persaraan (KWAP) are not exclusive and details of a possible deal could be finalised as early as this month, said the people who declined to be named as the talks are not public.

KWAP CEO Datuk Wan Kamaruzaman Wan Ahmad told Reuters that the fund had submitted its offer for the Prudential unit's stake, but declined to give details. Prudential did not comment on the talks, but said it was committed to its local business.

There is no certainty that Prudential's talk with KWAP will result in a deal, and the British insurer could also weigh a possible listing on the Malaysian bourse to divest the stake, the people said. — Reuters