Selangor Journal

BIMB Holdings gets nod from Finance Minister, BNM for Bank Islam’s listing

KUALA LUMPUR, Dec 10 — BIMB Holdings Bhd (BIMB) has received approval from the Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz and Bank Negara Malaysia (BNM) for its proposed internal reorganisation and distribution and capital repayment, paving the way for the listing of its subsidiary, Bank Islam Malaysia Bhd.

In a statement today, BIMB said it would proceed with its proposed group restructuring exercise that would unlock significant value for shareholders and transfer its listing status to Bank Islam.

“Upon completion of the proposed exercise, BIMB’s listing status will be transferred to Bank Islam, which will emerge as the one and only full-fledged Islamic financial institution to be listed in the region and enhance its corporate stature.

“This listing will allow Bank Islam to better position itself in the Islamic finance and Islamic capital market and capitalise on the growth of both markets in its efforts to expand its customer base,” BIMB said.

The principal adviser for the exercise is Maybank Investment Bank Bhd (Maybank IB).

BIMB first announced the group’s restructuring exercise via a filing with Bursa Malaysia on December 11, 2019.

According to the filing, the proposed restructuring involves five components — proposed placement of new BIMB shares to raise RM800 million; a scheme of arrangement (SOA) by BIMB to settle its outstanding warrants; an internal reorganisation; distribution and capital repayment; and the listing of Bank Islam.

“Proceeds from the placement and internal cash will be used to fully settle BIMB’s outstanding ‘sukuk’ held by Lembaga Tabung Haji.

“The SOA by BIMB is to settle its outstanding warrants, whereby the warrant holders will be paid a cash consideration for the cancellation of exercise rights in respect of the warrants,” it said in the filing.

— Bernama

 

 

 

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