CIMB distributes special dividend in Niaga

PETALING JAYA: CIMB Group Holdings Bhd (CIMB) has proposed a special interim dividend-in-specie by way of distributing 1.3 billion existing Class B ordinary shares, representing a 5.44% stake in indirect subsidiary PT Bank CIMB Niaga TBK to entitled shareholders of CIMB.
"The distribution of the dividend shares to the company’s shareholders pursuant to the proposed dividend-in-specie is an avenue to increase the public float of Niaga, with the aim of meeting the requirement under the new Indonesian Stock Exchange rule," CIMB said in a filing with the stock exchange.
The proposed dividend-in-specie has been approved by Bank Negara Malaysia and is not subject to the approval of CIMB shareholders or any other regulatory authorities.
Barring unforeseen circumstances, the exercise is expected to be completed by the end of July 2016.