KUALA LUMPUR (Aug 2): AMMB Holdings Bhd has begun preliminary discussions with Great Eastern Holdings Ltd over the sale of MetLife Inc’s Malaysian venture.

The transaction could value AmMetLife Insurance Bhd, which the US company jointly owns with Kuala Lumpur-listed AMMB, at US$250 million (RM1.13 billion) to US$300 million, said Bloomberg, citing people familiar with the matter.

In a bourse filing on Tuesday (Aug 1), AMMB said the discussions are part of its business review.

"It is crucial to note that these talks are still at a very preliminary stage. At this juncture, there is no certainty that we will enter into any definitive or binding agreement," it said.

It was reported on Monday that Great Eastern is in talks to buy MetLife’s Malaysian venture.

The subsidiary of Oversea-Chinese Banking Corp is conducting due diligence on AmMetLife and seeking regulatory approval to clinch the deal, said the people.

On Wednesday, AMMB said it is committed to abiding by the exacting disclosure requirements that it is governed by.

"Accordingly, any and all announcements related to this matter will be made in strict accordance with the Main Market Listing Requirements of Bursa Malaysia Securities," it said.

At the midday break, AMMB slipped eight sen or 2.09% to RM3.75, with 886,700 shares traded.

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