KUALA LUMPUR (Dec 10): BIMB Holdings Bhd (BHB) has obtained approval from the Minister of Finance and Bank Negara Malaysia for its proposed internal reorganisation and distribution and capital repayment which will pave the way for the transfer of its listing to its subsidiary, Bank Islam Malaysia Bhd.

In its announcement to Bursa Malaysia on the proposed exercise, BHB said it has received approval from the Minister of Finance and Bank Negara Malaysia in relation to the proposed internal reorganisation and distribution and capital repayment.

"Upon completion of the proposed exercise, BHB’s listing status will be transferred to Bank Islam, which will emerge as the one and only full-fledged Islamic financial institution to be listed in the region and enhance its corporate stature,” said Maybank Investment Bank, which is the principal adviser for the exercise, said on behalf of the financial group.

It said the listing will allow Bank Islam to better position itself in the Islamic finance and Islamic capital market and capitalise on the growth of both markets in its efforts to expand its customer base.

BIMB first announced the group’s restructuring exercise in December 2019.

In a filing dated Dec 11, 2019, the group told Bursa that the proposed restructuring involves five components which include a proposed placement of new BIMB shares to raise up to RM800 million, a scheme of arrangement (SOA) by BIMB to settle its outstanding warrants, an internal reorganisation, a distribution and capital repayment, and the transfer of listing to Bank Islam.

Shares of BIMB ended 34 sen or 8.59% higher at RM4.30 today, for a market capitalisation of RM7.71 billion.