Malaysia-based banking group AMMB Holdings is looking for potential buyers to dispose of certain stake in its life insurance operations, in a bid to raise nearly $600m from the deal.
Sources familiar with the deal were quoted by the Wall Street Journal as saying that the auction sale of nearly 70% stake is expected to begin in the next two to three weeks.
After the first round of bidding, successful suitors will be shortlisted in June and prior to proceeding with the next round of auction, they will have to obtain the approval from Malaysia's banking regulator.
AmLife Insurance and AmFamily Takaful, the joint ventures (JV) between AMMB and UK insurer Resolution, came to an end in January, following acquisition of 30% stake in JVs by the Malaysian lender.
It is expected that many foreign financial organization including from Japan and the US, will partake in the auction, according to the news agency.
AMMB is being advised by the US-based investment banking firm Morgan Stanley over the deal.
