BIMB Holdings in restructuring mode

KUALA LUMPUR: BIMB Holdings Bhd, which is embarking on a group-wide restructuring, has not made any decision on the possible disposal of its 59.9%-owned insurance unit Syarikat Takaful Malaysia Bhd (Takaful Malaysia) but may consider taking in a strategic shareholder in its wholly owned stockbroking unit BIMB Securities Sdn Bhd.
Group CEO Datuk Seri Zukri Samat said it has not submitted a proposal to Bank Negara Malaysia on the divestment of Takaful Malaysia.
He reiterated that the group is currently reviewing its structure, including the strategic direction of its core subsidiaries Bank Islam Malaysia Bhd, Takaful Malaysia and BIMB Securities, to ensure that it continues to create shareholders’ value.
“At this juncture, we’ve not come to that stage (deciding on whom to sell Takaful Malaysia to) yet. We’re still reviewing the structure with the best way to go forward, whether to sell Takaful Malaysia or not. We’re still contemplating,” he told reporters after its AGM yesterday.
Zukri said the restructuring was in line with the Financial Services Act 2013, which look at the obligations and responsibilities of the financial institution, adding that BIMB needs to consider whether its current structure is the best to provide shareholders’ value. The restructuring also includes the possibility of transferring its listing status.
“We’re looking at everything. We’re doing it in a holistic manner,” said Zukri, who is also managing director of Bank Islam.
He said the timeline for the group’s restructuring would depend on what structure it takes.
“Some structures take longer and some shorter. At this juncture I cannot comment, as we have not agreed on the best structure that suits the company,” he explained.
Zukri pointed out that the group may also consider bringing in a strategic shareholder for BIMB Securities.
“BIMB Securities, in terms of contribution, is not much but we’re reviewing the business. For 2016, we’ve seen some improvement in the numbers and contribution has started to improve. It all depends. If there’s a strategic shareholder who can enhance shareholders’ value, we can consider.”
Zukri said while no one has approached the group to take up a stake in BIMB Securities, the group has also not gone out to talk to potential parties.
“But once we finalise the structure, it may entail this (possible sale of BIMB Securities’ stake),” said Zukri.