Affin Bank unit gets approval to sell stakes in insurance units

Malaysia's Affin Hwang Investment Bank Bhd. has obtained approval from the country's finance minister to sell a 21% stake in AXA Affin Life Insurance Bhd. and a 2.95% stake in AXA Affin General Insurance Bhd. to Generali Asia NV.

The Affin Bank Bhd. unit will enter into a share-sale agreement with Generali Asia for the proposed transactions, according to a May 9 release.

A new entity will be formed to hold all the shares of both insurance units, which will then be merged with MPI Generali Insurans Bhd. Affin Bank will hold a 30% stake in the new company, while the remaining 70% stake will be owned by Generali Asia.

Generali Asia is a unit of Assicurazioni Generali SpA.