By LYDIA NATHAN / Pic TMR

BIMB Holdings Bhd (BHB) announced its shareholders and warrant holders have approved the proposed restructuring of the BIMB Group of Cos.

In a statement released yesterday, the Shariah-based banking group noted that the proposal was aimed at unlocking value for its shareholders which resulted in transferring its listing status to wholly owned subsidiary, Bank Islam Malaysia Bhd.

Bank Islam is one of the only two standalone Islamic banks in the country and the listing will enable it to become the region’s first listed pure-play full-fledged Islamic financial institution.

The company had initially announced its plans for the restructuring in December after receiving approval from Bank Negara Malaysia as well as the Finance Ministry in December 2020, but its plans were delayed by the Covid-19 pandemic.

It involved five components including a proposed placement of new BIMB shares to raise up to RM800 million, a scheme of arrangement by BIMB to settle its outstanding warrants, an internal reorganisation, distribution and capital repayment and the transfer of listing to Bank Islam.

The distribution of Bank Islam shares to BHB’s shareholders was based on a 1:1 ratio, and the entire exercise is expected to be completed by August 2021.

BHB CEO Mohd Muazzam Mohamed (picture) said he is grateful for the confidence and trust of the companies’ shareholders for the last 24 years.

“We received overwhelming support from them during the EGM and Court Convened Meeting held yesterday, in which almost 100% voted for all the resolutions we tabled.

“We look forward to charting another meaningful journey in the Islamic finance sphere, with Bank Islam at the helm as the only listed pure-play full-fledged Islamic financial institution,” he said.