KUALA LUMPUR (July 7): CIMB Group Holdings Bhd is planning to acquire the remaining minority shares it doesn’t own in CIMB Bank Bhd for RM1.4 million, in its bid to streamline the shareholding structure.

In a filing with Bursa Malaysia, CIMB Group said the exercise involves a members’ scheme of arrangement, which is subject to the approval of CIMB Bank shareholders at a court-convened meeting after which it must be sanctioned by the High Court.

The scheme provides an opportunity for a small number of CIMB Bank shareholders, who are not investors of the public-listed CIMB Group, to realise their investment in CIMB Bank at an “attractive” premium and valuation, the group said.

“Minority shareholders who wish to remain indirectly invested in CIMB Bank may use the cash proceeds to acquire the listed shares of CIMB Group, which are more liquid,” the filing read.

CIMB Group said the scheme is expected to lead to cost savings by way of improving certain administrative procedures, such as those relating to maintaining and updating the records of information on, holding of physical shareholders’ meetings with, and dispatching notices and issuance of dividend payments to the minority shareholders, as well as dealing with unclaimed monies belonging to uncontactable shareholders and attending to minority shareholders’ queries.

Shares of CIMB Group, the second largest banking group in the country by asset size, closed one sen or 0.2% lower at RM5.09, giving the group a market capitalisation of RM53.31 billion.