KUALA LUMPUR: Bank Islam Malaysia Bhd, the pioneer Shariah-compliant bank has become the first pureplay full-fledged Islamic financial institution listed in the Main Market of Bursa Malaysia, taking over the listing status from BIMB Holdings Bhd (BHB).
In a statement Friday, Bank Islam said the listing marked the completion of the BHB group’s restructuring exercise, which entailed a private placement exercise, a scheme of arrangement to settle outstanding warrants, and the internal reorganisation of subsidiaries.
The internal business realignment measures also include distribution and capital repayment exercise involving distributing BHB’s entire shareholdings in Bank Islam and Syarikat Takaful Malaysia Keluarga Bhd to the shareholders of BHB, and lastly, the transfer of listing status of BHB in the Main Market to Bank Islam.
Concurrently, BHB will become a wholly-owned subsidiary of Bank Islam, with the bank assuming the parent company role.
This exercise results in Takaful Malaysia becoming a standalone Takaful operator with diversified and strong institutional shareholders.
BHB and Bank Islam chief executive officer Mohd Muazzam Mohamed said: “Bank Islam will be accorded full autonomy in undertaking and pursuing its corporate and business strategies and adopt capital management initiatives with the completion of this corporate exercise.”
“With the listing, Bank Islam will have access to a wider and diverse capital base, allowing for its efficient use towards greater support of its future expansion programmes and business growth. In addition, the group will have greater scale and ability to support its organic growth,” he said.
Muazzam added that the listing also provided opportunities for investors to participate directly in the equity and future growth of the new Bank Islam Group, which includes BIMB Investment Management Bhd and BIMB Securities Sdn Bhd.