CIMB Group Holdings Bhd (1023) announced yesterday that Bank Negara Malaysia has approved the group's proposal to acquire of up to 19.67 per cent equity interest in PT Bank CIMB Niaga TBK.
In a filing to Bursa Malaysia, CIMB said Bank Negara gave the approval through a letter dated July 9.
However, the central bank, among other things, specified that for the purpose of recording the investment which was not made through a local licensed institution, CIMB is required to notify Bank Negara of the date of completion.
The central bank also said should the group enter into any hedging contract to manage against the foreign exchange fluctuation risks for the investment, such a contract must be entered into with a local licensed financial institution and terminated by CIMB upon the full settlement or completion of the investment.
CIMB had announced that the company together with CIMB Group Sdn Bhd (a full subsidiary of CIMB) had on May 14 entered into a conditional agreement with Khazanah Nasional Bhd in relation to the proposed acquisition by CIMB Group of about 17.10 per cent equity interest in CIMB Niaga, and a further equity interest of about 2.57 per cent in CIMB Niaga, the latter sale of which is at the sole discretion of Khazanah. - Bernama
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