Quick take: BIMB rises 2.8% on restructuring plans

KUALA LUMPUR: Shares of BIMB HOLDINGS BHD were up 2.8% in early trade Thursday after the company announced a group restructuring exercise that includes the transfer of its listing status to subsidiary, Bank Islam Malaysia Bhd.

The banking group rose 2.8%, or 12 sen to RM4.40. It is currently trading at a PE ratio of 10.65 times. In the past one year, the counter has appreciated 26.66%.

BIMB said the proposed restructuring would involve five components. These are: a proposed placement of new BIMB shares to raise RM800mil, a scheme of arrangement (SOA) by BIMB to settle its outstanding warrants, an internal reorganisation, distribution and capital repayment and the listing of Bank Islam.

“This listing will allow Bank Islam to better position itself in the Islamic finance and Islamic capital market and capitalise on the growth of both markets in its efforts to expand its customer base,” BIMB said.

The restructuring will involve a proposed placement of new shares to raise RM800mil. Together with internal cash, the proceeds will go towards settlement of outstanding sukuk with Lembaga Tabung Haji.

The internal reorganisation will see BIMB disposing its entire equity interests in its stockbroking and leasing subsidiaries to Bank Islam, to be settled in cash.

The group will also undertake SOA to pay warrant holders a cash consideration for the cancellation of their exercise rights in respect to the warrants.

As part of the restructuring, BIMB will undergo an internal reorgnisation whereby its stockbroking and leasing subsidiaries will be sold to Bank Islam, based on the latest audited net asset value of the units.

After the completion of the placement, the SOA and the internal reorganisation, BIMB’s entire shareholdings in Bank Islam and Syarikat Takaful Malaysia Keluarga Bhd will be distributed by way of distribution-in-specie to BIMB shareholders.

Source: TheStar