BIMB awaits response from Indonesian bank (5258)

KUALA LUMPUR: Bank Islam Malaysia Bhd (BIMB) is awaiting response from an Indonesian Islamic bank on its proposed offer to acquire 30% to 40% stake, said managing director Datuk Seri Zukri Samat.
Zukri said the proposed acquisition was part of BIMB’s move to expand its overseas operations.
“BIMB
has identified one bank and has indicated its offer to them but so far,
we have yet to receive any response to our proposal,” he said.
He said this at a briefing after handing over hearses and multi-purpose vans to mosques and non-governmental organisations.
On
the possible Bank Indonesia’s move to allow only up to 40% foreign
institution ownership in Indonesian banks, he said BIMB believed that
anything above 30% should be considered as strategic stake.
Zukri, who declined to name the bank, said BIMB hoped to finalise the deal by year-end.
CIMB Research
said in a report that at a recent meeting, BIMB management had
indicated that talks to acquire a stake in Bank Muamalat Indonesia were
still ongoing and there was no concrete timeline for a conclusion.
“If
an acquisition materialises, it will provide the group with a foothold
in the under-penetrated and fast-growing Indonesian banking system,”
the brokerage said. — Bernama

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