CIMB Group Holdings Bhd. completed the sale of part of its stake in two joint ventures to U.S.-based partner Principal Financial Group Inc.
The company said May 25 that it off-loaded a 10% stake in CIMB-Principal Islamic Asset Management Sdn. Bhd. and a 20% stake in CIMB-Principal Asset Management Bhd.
The company expects to gain around 920 million ringgit and a 15-basis-point increase in its common equity Tier 1 ratio from the stake sales.
Following the sales, Principal Financial raises its stake to 60% in CIMB-Principal Asset Management and CIMB-Principal Islamic Asset Management, with CIMB Group retaining 40% stakes in the ventures. The companies will continue to co-manage the ventures.
As of May 24, US$1 was equivalent to 3.98 Malaysian ringgit.
