Malaysia's BIMB Holdings Bhd. proposed a group restructuring that will include a share sale to raise approximately 800 million ringgit, an internal reorganization and the transfer of its listing status to its subsidiary Bank Islam Malaysia Bhd.
In addition, the restructuring will involve a scheme of arrangement to settle 426,715,078 outstanding warrants, the company said Dec. 11. It will use proceeds from the proposed share placement, together with internal cash, to redeem its outstanding 922.2 million ringgit worth of sukuk, held by Lembaga Tabung Haji. Subsequently, BIMB Holdings will implement a scheme of arrangement pay roughly 110.9 million ringgit to holders of the outstanding warrants as at Nov. 15.
Under the internal reorganization, BIMB Holdings will transfer its entire equity interests in BIMB Securities (Holdings) Sdn. Bhd., BIMB Securities Sdn. Bhd. and Syarikat Al-Ijarah Sdn. Bhd. to Bank Islam Malaysia for a total of 115.1 million ringgit in cash. Further, it will distribute its entire shareholdings in Bank Islam Malaysia and Syarikat Takaful Malaysia Keluarga Bhd. to its shareholders by way of distribution-in-specie. Shareholders will be offered 1 each Bank Islam share and Syarikat Takaful share in exchange for 1 BIMB Holdings share.
BIMB Holdings said the final step of restructuring would involve the transfer of its listing status and the admission of Bank Islam Malaysia to the official List of Bursa Securities.
The group expects to complete the restructuring in the third quarter of 2020, subject to the approvals of Bank Negara Malaysia, Ministry of Finance, the Securities Commission, Bursa Securities, as well as shareholders of the group and Bank Islam Malaysia, among others.
As of Dec. 10, US$1 was equivalent to 4.160 Malaysian ringgit.