Paves the way for new shareholders at Bank Islam
KUALA LUMPUR: Friday [13 October, 2006] – BIMB Holdings Berhad (BIMB Holdings) today received shareholders’ approval for its plan to bring two strong and synergistic shareholders into its subsidiary, Bank Islam Malaysia Berhad (Bank Islam).
The approval, the last of three statutory approvals needed, clears the way for the completion of an exercise to inject RM1.014 billion into Bank Islam. Shareholders who attended the extraordinary general meeting convened to vote on the restricted issue gave their unanimous approval for the issue.
Under the proposed restricted issue, 690.19 million new Bank Islam shares will be issued to Dubai Financial LLC (DF), a wholly-owned subsidiary of the Dubai Investment Group, for a total consideration of RM828.22 million; while 155.29 million new shares will be issued to Lembaga Tabung Haji (LTH) for RM186.35 million. This gives DF a 40% stake and LTH a 9% stake in the bank’s enlarged share capital of 1.725 billion shares. The new shares are priced at RM1.20 per share.
BIMB Holdings will retain a 51% stake in Bank Islam after the exercise.
The restricted issue was proposed in June this year, to enable Bank Islam to address its need for recapitalisation and to put the bank on a stronger financial footing, following its provision of RM775 million in non-performing loans in the financial year ended 30 June 2005.
“With the Bank’s recapitalisation programme on track, our focus will be to grow our business as quickly as we can. We must move briskly to tap into new geographies, and through new and innovative products including asset management and investment banking” Dato’ Noorazman Abdul Aziz, Group Managing Director of BIMB Holdings said.
“With DF providing the bridge to the Gulf region and given the strong synergistic support of LTH, we are confident that Bank Islam will be able to convert the new opportunities and emerge as one of the leading players in Islamic banking in the region and perhaps the world,” he added.
Under the shareholders agreement entered into in conjunction with the subscription agreement, it has been agreed that their common objective was for the Bank to become a leading domestic and international player in the Islamic banking sector and they would each use its reasonable best endeavours to achieve this objective.