LONDON: Prudential PLC was in advanced talks with Malaysian pension fund Kumpulan Wang Persaraan (KWAP) to sell a minority stake in its Malaysia subsidiary in order to comply with foreign ownership rules, Reuters reported on Wednesday.

The FTSE 100-listed insurer and asset manager was looking to sell a 30% stake in its wholly-owned Prudential Assurance Malaysia Berhad unit to KWAP for around US$435mil (RM1.69bil), Reuters reported citing sources familiar with the matter.

Foreign insurers are looking to cut their stakes in local units to 30% following a directive by the Malysian central bank which looks to increase local participation in the insurance market.

Reuters reported the talks were not exclusive between KWAP and Prudential.

Details of the any deal, however, could be finalised as early as this month.

KWAP Chief Executive Officer Kamaruzaman Wan Ahmad confirmed it had submitted an offer but did not provide details to Reuters.

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