On behalf of the Board, Maybank IB wishes to announce that the Company has obtained the order of the High Court of Malaya confirming the reduction and repayment of the entire share capital of the Company under Section 115 and Section 116 of the Act to give effect to the Distribution and Capital Repayment today (“Order”). Following the receipt of the Order, the SSA for the Internal Reorganisation has become unconditional today.
Maintain OUTPERFORM and SoP-driven TP of RM5.10, based on: (i) our ascribed Bank Islam’s valuation of 0.9x FY22E PBV, and (ii) 0.25x per TAKAFUL share. While investors might be looking ahead into the group’s restructured form with a positioning into TAKAFUL, presently BIMB itself commands commendable ROEs of c.11%.
Private placement is something good and can save funding cost. Dilution of profits can be offsets by saving cost. Long term is good especially it will be full fledged Islamics Bank in the region. May attracts more institutions to buy up.
MULTIPLE PROPOSALS BIMB HOLDINGS BERHAD ("BHB" OR "COMPANY") (I) PROPOSED PLACEMENT; (II) PROPOSED SOA; (III) PROPOSED INTERNAL REORGANISATION; (IV) PROPOSED DISTRIBUTION AND CAPITAL REPAYMENT; AND (V) PROPOSED TRANSFER OF LISTING (COLLECTIVELY TO BE REFERRED TO AS "PROPOSALS")