Dubai Financial Group, a subsidiary of Dubai Group, has agreed to divest its 30.5% stake in Bank Islam to BIMB Holdings for US$550 million.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
DFG acquired a 40% stake in Bank Islam for a value of US$224 million in October 2006. The shareholding was reduced to 30.5% in 2009 due to Dubai Financial’s non-participation in the capital increase exercise that Bank Islam undertook at that time.
Since Dubai Financial’s acquisition, the total assets of Bank Islam increased from MYR14.6 billion (US$4.5 billion) in 2006 to MYR37.4 billion (US$11.5 billion) by the end of 2012 with substantial improvement in the quality of its loan book and continuous profitability.
Fadel Al-Ali, CEO of Dubai Group, said: "Since our investment, Bank Islam has grown in scale and size, and is a pioneer in retail Islamic banking in Malaysia today. The sale of our stake in Bank Islam stems from a strategic plan to support broader ongoing restructuring process by selling assets at the right value.
"We are pleased that we achieved solid return on our investment. BIMB Holdings, as major shareholder, has played an instrumental role in this success, and we believe that they will continue to support Bank Islam to further grow their network and market share."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
