5 Interactive Distance Learning Programs on Islamic Banking and Finance

Thursday, June 18, 2009

BIMB will retain stake in Bank Islam, says MD

BIMB Holdings Bhd does not intend to sell its 51% stake in Bank Islam (M) Bhd, says group managing director Datuk Johan Abdullah.

“It is a major core subsidiary and in terms of revenue and net profit contribution, we had about 80% as at last year. This is a strategic investment for us,” he said after the company EGM yesterday.

Bank Islam is currently controlled by BIMB with a 51% stake while Dubai Islamic Investment Group owns 40% and Lembaga Tabung Haji 9% .Talk was rife earlier in the year of a possible merger between Maybank Islamic and Bank Islam.

BIMB has since said it was not in talks to merge Bank Islam with Maybank Islamic but would continue to look for potential partnerships that would be strategic to its business.

Bank Islam managing director Datuk Zukri Samat also said yesterday that the bank was still looking for merger and acquisition opportunities. The RM540mil that it would raise by selling preference shares to shareholders would “give a bit more leeway” for this purpose, he said without elaborating.

On another matter, Johan said talks between its subsidiary Syarikat Takaful Malaysia Bhd and Abu Dhabi-Kuwait-Malaysia Strategic Investment Corp to dispose the takaful operations to the latter were still “ongoing”.

“Due the market conditions, some parameters have changed. We are revisiting a whole wide spectrum of new issues,” he said.


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