Malaysia’s BIMB starts talks with Tabung Haji for Bank Islam stake

KUALA LUMPUR: BIMB Holdings Bhd says the proposed deal to buy Lembaga Tabung Haji's (Tabung Haji) stake in Bank Islam Malaysia Bhd will be done on an arm's length basis. BIMB yesterday received approval from Bank Negara Malaysia to start talks to buy Tabung Haji's 18.5 per cent stake in the bank.

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/20130612002442/Article/index_html
Published: Jun 12, 2013

Source from (The Malaysian Insider): http://www.themalaysianinsider.com/business/article/malaysias-bimb-starts-talks-with-tabung-haji-for-bank-islam-stake/
Published: Jun 12, 2013

Source from (The Sun Daily): http://www.thesundaily.my/news/739636
Published: Jun 12, 2013


BIMB owns 51 per cent of Bank Islam, while the remaining 30.5 per cent stake is held by the Dubai Financial Group (DFG).

In a statement to Bursa Malaysia yesterday, BIMB said the central bank has set December 31 2013 as the deadline for the proposed acquisition.

BIMB has already begun discussions with DFG to acquire the latter's interest in the bank and has till the end of this month to announce the result of the discussions. The talks were originally slated to be concluded on March 31.

A source familiar with the negotiations told Business Times that the talks are still ongoing and nothing has yet materialised.

The source also said there will be no complications in BIMB's plan to acquire Tabung Haji's stake in Bank Islam, although Tabung Haji itself is BIMB's ultimate shareholder, as all discussions will be done at an arm's length basis.

Tabung Haji owns 51.5 per cent of BIMB.

"Although they are our ultimate shareholder, the negotiations would be based on market benchmark and in the best interest of the shareholders," said the source.

It was reported in March that talks had stalled between BIMB and DFG because the former's long-awaited plan to transfer its listing status to Bank Islam was almost completed - a prospect which DFG would find more attractive than selling off the stake.

Tabung Haji was also reportedly looking to revive its plans of creating an Islamic mega bank involving a merger between BIMB and Bank Muamalat Malaysia Bhd.

The combined entity would have more assets than Maybank Islamic Bank, which, at this point, is Malaysia's largest Islamic bank in terms of assets.