Prudential Eyes Stake In Malaysia General Insurer - Report

1st Aug 2010 00:10

KUALA LUMPUR (Dow Jones)--Prudential PLC (PRU.LN) is looking at acquiring the insurance business of Malaysian insurer Pacific & Orient Bhd. (6009.KU), The Edge weekly reported over the weekend, citing unnamed sources. The Edge reported that Prudential had written to Malaysia's central bank to seek approval to begin talks on the potential purchase. Bank Negara's prior approval is necessary before any major stake sale talks involving banks and insurance firms can commence. P&O's major shareholder and chief executive Chan Thye Seng had been contemplating divesting a strategic stake in the company, making the general insurer a natural M&A target, The Edge quoted sources as saying. Chan holds a 61.1% stake in P&O, the paper said. Prudential currently has a locally-incorporated unit, Prudential Assurance Malaysia Bhd., which has life and general insurance operations. Last year, Malaysia liberalized the sector, allowing foreign equity participation in local insurers of a maximum 70%, up from 49% previously, in a bid to speed up industry consolidation. The parties weren't immediately available for comment. Newspaper Web site: http://www.theedgemalaysia.com -By Kuala Lumpur Bureau, Dow Jones Newswires; 603-2026-1233; [email protected] (END) Dow Jones Newswires August 01, 2010 19:10 ET (23:10 GMT)