Tan is engaging advisers to explore a potential divestment and could seek a price that values the whole business at least RM20 billion (US$5 billion), Bloomberg reported, citing sources familiar with the matter.
The amount sought could change as discussions remain at a preliminary stage and might not lead to a sale, the sources said.
Another source told Business Times that the asset is likely to draw interest from deep-pocketed Malaysian investors and institutions.
“Prudential Malaysia is performing strongly, and Tan believes the timing is right to monetize the investment,” the person told the Malaysian newspaper.
 |
|
Vincent Tan pictured during a press conference, May 21, 2015. Photo Belga via AFP |
A RM20 billion valuation would mark a substantial increase from the price implied by an agreement reached last year between UK-based insurer Prudential Plc and Tan’s investment vehicle Detik Ria.
The agreement settled a long-running legal dispute and cleared the way for a wholly owned subsidiary of Prudential Plc to buy an additional 19% stake in Sri Han Suria, the holding company that owns Prudential Malaysia, from Detik Ria for RM1.52 billion.
That transaction valued Prudential Malaysia at roughly RM8 billion and left Prudential Plc with a 70% stake and Detik Ria with 30%, Reuters reported.
Malaysia’s foreign ownership rules limit overseas investors to a maximum 70% stake in insurers, meaning any buyer of Tan’s remaining stake would have to be Malaysian.
Prudential Malaysia ranks among the country’s largest life insurers and is part of Prudential Plc’s Malaysian life insurance operations.
Tan is the founder of Berjaya Corporation, a conglomerate that spans property, retail, financial services and gaming. He also has interests in U Mobile, a major mobile network operator in Malaysia, and Seven Eleven Malaysia, according to Forbes, which ranked him 29th on its Malaysia rich list in April.
Source:e.vnexpress.net
