MAAH falls to lowest since May 3, more downside seen

KUALA LUMPUR: MAA HOLDINGS BHD []’s (MAAH)share price fell to RM1.14, the lowest since May 3 as investors were disappointed over the price which it had proposed to sell its insurance unit.

At 2.53pm, it was down 24 sen to RM1.14 with 44.78 million shares done, with more downside seen for the share price.

The FBM KLCI rose 1.8 points to 1,553.59. There were 388.66 million shares done valued at RM653.38 million. There were 273 gainers, 331 losers and 309 stocks unchanged.

On Wednesday, MAAH announced it had obtained the Minister of Finance’s (MoF) approval to dispose of its 100% stake in Malaysian Assurance Alliance Bhd (MAAB) for RM344 million to Zurich Insurance Company Ltd.

The share price had rallied 11 sen to RM1.38 on Wednesday on expectations of a better pricing.

On April 11, it had submitted an application to Bank Negara Malaysia to seek the approval of the Minister of Finance to sell its entire interest in five subsidiaries to Zurich Insurance.

Apart from MAAB, the other four were Multioto Services Sdn Bhd; MAAGNET Systems Sdn Bhd; Malaysian Alliance Property Services Sdn Bhd and MAAGNET-SSMS Sdn Bhd.

MAAH said it had received the approval to sell its 100% equity interest in MAAB for RM344.0 Million to Zurich. However, the proposed disposal was subject to the execution of definitive agreements.

aduh fr 1.38 down 1.11 ... -27sen