CIMB Denies Plan To Privatise Indonesian Unit CIMB Niaga

KUALA LUMPUR, Oct 22 (Bernama) -- CIMB Group Holdings Bhd today denied plans to privatise its Indonesian banking subsidiary, PT Bank CIMB Niaga Tbk.

In a statement, the group said it has made no decision and tabled no formal proposal on the potential privatisation of CIMB Niaga.

The 92.5-per-cent-owned unit remains an integral part of the group’s regional footprint and remains committed to its operations in Indonesia.

“The group will continue to meet all applicable regulatory guidelines, including minimum free float requirements in a timely and structured manner,” it added.

In CIMB Investment Bank Bhd’s research note yesterday, it said that CIMB Group is stepping up efforts to pursue a potential delisting of CIMB Niaga and plans to engage regulators on the exercise.

The investment bank said the move was underpinned by CIMB’s view that CIMB Niaga remained undervalued and the bank’s long-term positive outlook on Indonesia, particularly given Niaga’s strengths in wealth management, corporate banking, ASEAN connectivity, mass affluent banking, and Shariah banking.

-- BERNAMA