CIMB Group to buy remaining 0.0008% shares in CIMB Bank for RM1.4mil


KUALA LUMPUR: CIMB Group Holdings Bhd is planning to acquire the remaining 0.0008% in CIMB Bank Bhd for RM1.4mil, as its plan to streamline its shareholding structure.

In a filing with Bursa Malaysia, the bank said the exercise involves a members’ scheme of arrangement (scheme) that will be undertaken with its ordinary shareholders pursuant to the Malaysian Companies Act 2016, and does not involve any arrangement with any creditor of CIMB Bank.

The scheme is subject to the approval of the ordinary shareholders of CIMB Bank at a court-convened meeting and sanction of the scheme by the High Court of Malaya.

It said the scheme provides an opportunity to the remaining small number of existing non-CIMB Group ordinary shareholders of CIMB Bank (minority shareholders) to realise their investment in CIMB Bank at an attractive premium and valuation.

“CIMB Bank has appointed an independent valuer to opine on the offer price to ensure the fairness of the offer price to the minority shareholders,” it said.

The scheme, including the offer price, was arrived at after taking into consideration the interests and needs of CIMB Bank, the minority shareholders and CIMB Group.

“Minority shareholders who wish to remain indirectly invested in CIMB Bank may use the cash proceeds to acquire the listed shares of CIMB Group, which are more liquid,” it said.

CIMB Group said the scheme is expected to lead to cost savings by way of improving certain administrative procedures, such as those relating to maintaining and updating the records of information on, holding of physical shareholders’ meetings with, and dispatching notices and issuance of dividend payments to the minority shareholders, as well as dealing with unclaimed monies belonging to uncontactable shareholders and attending to minority shareholders’ queries.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

   

Next In Business News

Tenaga plans US$1bil IPO for power business, sources say
Construction industry players appeal government to review industry regulations
Ringgit ends higher against US dollar for fourth consecutive day
Tan Chong gets 4-year extension for its solar project PPA
Heineken Malaysia reports three-fold increase in 2Q net profit
Tengku Zafrul: Google Cloud will enable Malaysia to move forward digitally
Bursa Malaysia advances on better-than-expected GDP
Core inflation forecast at upper range of 2% to 3% in 2022
Indonesia rupiah hits two-month high among mixed Asian FX
Asian stocks fall on nagging Fed rate hike worries

Others Also Read