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CIMB Group, Principal complete equity realignment.

CIMB Group Holdings Bhd announced today the completion of its shareholding realignment with Principal Financial Group (Principal) in CIMB-Principal joint ventures across Asean.

CIMB Group chief executive officer Tengku Datuk Seri Zafrul Aziz said that asset management continues to be an integral part of the bank's regional banking business.

'This shareholding realignment enables CIMB-Principal to have more scale and improved global investment expertise. We expect this change to improve our ability to deliver better products to our clients, while creating sustainable long-term value for CIMB Group,' he said in a statement.

He said the bank is able to realise attractive gains from our strategic investment in CIMB-Principal and look forward to continue participating in the joint venture as a 40 per cent shareholder.

Principal has now increased its stake to 60 per cent with CIMB retaining 40 per cent ownership in CIMB-Principal Asset Management Group and CIMB-Principal Islamic Asset Management.

The joint ventures will continue to be co-managed by both companies.

This exercise will see CIMB Group recording a gain of approximately RM920 million and about 15 basis point (BPS) increase in its Common Equity Tier 1 (CET1) ratio.

CIMB and Principal have partnered in the region since 2004 and have successfully grown their operations across Malaysia, Singapore, Indonesia and Thailand.

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Publication:Malay Mail Online (Petaling Jaya, Malaysia)
Date:May 25, 2018
Words:255
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