KUALA LUMPUR: Malaysia’s auto-to-insurance conglomerate DRB-Hicom plans to
sell 30 percent of its 70 percent stake in partly state-owned Islamic lender
Bank Muamalat Malaysia, a source with knowledge of the deal said on
Thursday.
Malaysia’s central bank last month gave the country’s ninth-largest Islamic bank, AFFIN Holdings, permission to enter talks with DRB-Hicom, which has been told by the central bank to reduce its stake to a maximum of 40 percent.
DRB-Hicom bought its 70 percent stake in Bank Muamalat from Bukhary Capital in 2008. The government’s investment holding arm Khazanah Nasional owns the other 30 per cent.
“The matter is in Bank Negara’s (Malaysia’s central bank) hands now,” the source told Reuters, adding that a deal should be completed by the end of the year.
DRB-Hicom, controlled by billionaire Syed
Mokhtar Al-Bukhary, had tried to reduce its stake in Bank Muamalat with a sale
to Bank Islam Malaysia last year and previously to Bahrain-based Islamic lender
Al Baraka Banking Group.
Should the deal go through, Affin would emerge as Malaysia’s fourth-largest Islamic lender by assets.
Read more: DRB-Hicom to sell 30% Bank Muamalat stake?
Malaysia’s central bank last month gave the country’s ninth-largest Islamic bank, AFFIN Holdings, permission to enter talks with DRB-Hicom, which has been told by the central bank to reduce its stake to a maximum of 40 percent.
DRB-Hicom bought its 70 percent stake in Bank Muamalat from Bukhary Capital in 2008. The government’s investment holding arm Khazanah Nasional owns the other 30 per cent.
“The matter is in Bank Negara’s (Malaysia’s central bank) hands now,” the source told Reuters, adding that a deal should be completed by the end of the year.
Should the deal go through, Affin would emerge as Malaysia’s fourth-largest Islamic lender by assets.
Read more: DRB-Hicom to sell 30% Bank Muamalat stake?
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