BHB still keen to buy stake in Bank Syariah Indonesia

  • Banking
  • Tuesday, 28 Oct 2014

KUALA LUMPUR: BIMB Holdings Bhd (BHB), which owns Bank Islam Bhd, is still keen to acquire a stake or even have a management control in Bank Syariah Indonesia as part of its expansion plan.

Its group managing director and chief executive officer Johan Abdullah said the talks were still at a preliminary stage, and there was still no material development.

“We may purchase a stake in the bank. However, the scenario has changed. We need to be mindful of the changes in the regulatory environment, the fact that foreigners can’t own more than 50% of the equity,” he told reporters on the sidelines of the company’s EGM here yesterday.

Due to the regulatory uncertainty in Indonesia, Johan said that the group would engage the Indonesian authorities before making any decision to acquire a stake in the bank.

Johan was commenting on a report earlier this month that BHB was eyeing a stake in Bank Syariah Indonesia.

“In principle, we want to expand on vivid business objectives. No point expanding regionally when you are not clear of the Indonesian regulations. We want to have a management control,” he said, BHB was assessing the situation and the aftermath of the Indonesia presidential election.

“If it’s worthwhile then, BHB is willing to look at it. But I believe the pie is big enough, you know, it is so-called standalone and non-leverage with the conventional, we still have a way to go,” he added. — Bernama

At the EGM, shareholders gave their nod to the proposed dividend reinvestment plan (DRP) that would provide shareholders with the option to elect to reinvest in whole or in part of their cash dividend with the new ordinary shares of RM1 each in BHB.

The DRP is expected to be put in place by the fourth quarter of 2014. — Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!


Next In Business News

Indonesia to suspend some palm oil export permits - officials
Oil prices edge higher as IEA's Birol talks up China demand outlook
Indonesia 2022 GDP growth races to 9-year high on resource boom
Foreign investors' latest targets in China
Asia shares skid, dollar gains as yields spike
Bursa likely to be muted as sentiment remains soft
Gold futures likely to trade lower this week
Short-term rates set to remain stable
Elsoft to start its medical device ops soon
WTK strengthens plantation business

Others Also Read