CIMB acquires additional stake in Indonesian unit

Malaysian lender CIMB is raising its stake in Indonesia's Bank CIMB Niaga to better capitalise on the southeast Asian nation's fast-growing economy.

Malaysia's second-biggest lender said on Friday it will purchase 17.1 percent of CIMB Niaga from Khazanah Nasional Bhd for 1.7 billion ringgit ($533.6 million), confirming what analysts and a source familiar with the plan earlier told Reuters.

Khazanah, Malaysia's state investment agency, has the option of selling another 2.57 percent in Indonesia's fifth-largest bank to CIMB for 254 million ringgit ($79.56 million), it said.

CIMB will issue new shares to Khazanah priced at 14.50 ringgit ($4.54) each for the deal to bring its total stake in CIMB Niaga to 97.93 percent.

Khazanah currently has a 28 percent stake in CIMB.

"The deal increases our exposure to Indonesia," CIMB's chief executive officer Nazir Razak said in a statement. "We expect it to be earnings per share accretive."

View the full story in Reuters.

Follow the link for more news on

Also Read

No contagion risk for Vietnam banks from billionaire corruption scandal

PH banks’ total assets expanded 9.2% to $439.3b in 2023

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit