BIMB Holdings Bhd is likely to conclude the purchase of the 18.5% stake held by Lembaga Tabung Haji (LTH) in Bank Islam Malaysia Bhd by the end of the month, sources said. “Being friendly parties there was no problem in talks between BIMB and LTH with issue of pricing done at arm’s length based on market benchmark in the best interest of the shareholders,” said a source pointing out that it made sense for BIMB to wrap up the acquisition of the 49% stake in Bank Islam that it does not own at one go to facilitate the raising of funds.
- BIMB owns 51% of Bank Islam, while the remaining 30.5% stake is held by Dubai Financial Group (DFG). LTH meanwhile is the ultimate holding company of both BIMB and Bank Islam. Apart from its direct interest in Bank Islam, the pilgrim fund also owns a 51.5% stake in BIMB. On Jun 11, BIMB had received Bank Negara’s approval to start talks to buy LTH’s block of shares in the bank with a deadline to conclude the deal by Dec 31, 2013. (Starbiz)
Source: CIMB Daybreak - 15 July 2013