CIMB ‘categorically denies’ that it will privatise Indonesian unit Niaga
It says Niaga remains an ‘integral part’ of the group’s regional footprint
CIMB has categorically denied any intention to privatise its Indonesian unit, CIMB Niaga, despite multiple media reports suggesting otherwise. In a statement released on Thursday, CIMB Group emphasized that the bank remains an "integral part" of its regional footprint and that no formal proposal has been made regarding the potential privatisation of CIMB Niaga.
The Indonesian unit is owned by CIMB Group, which holds approximately 91.4 percent of its shares, while the remaining portion is publicly traded on the Indonesian Stock Exchange. Analysts from Citi had cited a potential Rs945 million (US$231.6 million) valuation for CIMB Niaga during a briefing with CIMB Group's CFO, Khairul Rifaie.
However, the statement underlined that any potential privatisation would face significant regulatory hurdles. The new regulations set minimum free float requirements for CIMB Niaga, which currently stands at around 6.6 percent, aiming to boost liquidity and transparency in the Indonesian stock market. Moreover, MSCI had warned that Indonesia's emerging-market status could be at risk, resulting in a mass sell-off of Indonesian stocks.
CIMB Group's research arm, CIMB Securities, echoed similar concerns, stating that a public offering would be less feasible under current market conditions. CIMB Niaga is set to release its third-quarter results on October 28, followed by CIMB Group's financial report on November 25.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
