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Malaysia's CIMB Group to sell stake in China's Bank of Yingkou
[KUALA LUMPUR] Malaysian bank CIMB Group Holdings Bhd has agreed to sell its 18.21 per cent stake in China's Bank of Yingkou Co Ltd to investment holding company Shanghai Guozhijie Investment Development Co Ltd.
The stake is valued at 972 million ringgit (S$314.39 million), according to a statement from CIMB Group, Malaysia's second-largest lender by assets. The all-cash deal is subject to regulatory approvals and is expected to be completed in 2017.
"Capital requirements for minority investments in other banks such as this has continued to increase, so much so that in time, the returns threshold required to justify this investment will be too high," CIMB Group Chief Executive Zafrul Aziz said in the statement.
The disposal was in line with the bank's operating and capital targets, he added.
CIMB Group last month posted a 26.9 per cent rise in net profit for the third quarter on cost-cutting measures, flagging stronger loan growth in the months ahead.