--AMMB Holdings gets central bank's approval to start stake buy-back talks in insurance units 
    --UK joint venture partner confirms prospective stake sale talk 
    --AMMB says deal will help both parties to pursue their separate growth strategies

(Adds AMMB chairman's comment in third paragraph, group managing director's comments in seventh paragraph, background in fifth and eight paragraphs)

 
   By Abhrajit Gangopadhyay

KUALA LUMPUR--Malaysia's AMMB Holdings Bhd (1015.KU) said Tuesday it has received the central bank's approval to start talks with joint venture partner Friends Life FPL Ltd. to buy back the equity stakes held by the U.K. company in two insurance units, a move that will help both to pursue their own growth strategies.

In a statement to the Malaysian stock exchange, AMMB Holdings said it will need an approval from the finance minister before it signs a definite pact to repurchase 30% equity stake each held by the U.K. joint venture partner in AmLife Insurance Bhd and AmFamily Takaful Bhd. AMMB Holdings currently holds 70% each in both the insurance ventures.

"The proposed repurchase allows both AMMB and Friends Life to pursue separate strategies to enhance our respective businesses," chairman of AMMB Holdings Azman Hashim said in the statement.

Earlier Tuesday, Resolution Ltd. (RSL.LN), the UK life insurance firm founded by entrepreneur Clive Cowdery, said its operating business Friends Life is in discussions on the possible sale of its 30% stakes in the two Malaysian insurance joint ventures.

Friends Life's had bought 30% stake in AmLife in December 2008 and followed in 2011 with a similar stake purchase at AmFamily Takaful, the insurance business that complies with Islamic law.

Islamic financing differs from conventional financing in its adherence to Shariah, or Islamic law, which among other things bans the charging of interest. Speculation or benefiting to the detriment of the public good is also taboo.

The proposed stake buy-back will "enable us to focus on opportunities unique to our group's business model," Ashok Ramamurthy, group managing director at AMMB Holdings said in the statement.

AMMB Holdings which owns a full service bank, investment banking, broking businesses, had announced in July its plan to buy MBF Cards, the largest non-bank credit card company in Malaysia.

Ian Walker in London contributed to this article.

-Write to Abhrajit Gangopadhyay at abhrajit.gangopadhyay@dowjones.com

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