Zafrul: Mitsubishi stake in CIMB picked up by institutional investors

KUALA LUMPUR: Mitsubishi UFJ Financial Group’s (MUFG) stake in CIMB Group Holding Bhd has been absorbed by institutional investors.

“Institutional investors both local, including Employees Provident Fund and Permodalan Nasional Bhd, and overseas had taken up MUFG’s stake,” said CIMB chief executive officer and executive director Tengku Datuk Seri Zafrul Abdul Aziz on the sidelines of Khazanah Megatrend 2017.

Last month, the Japanese banking group offered to sell its entire 412.5 million shares in CIMB – held through Bank of Tokyo-Mitsubishi UFJ Ltd (BTMU) – at RM6.15 to RM6.30 apiece.

That block of shares offered by MUFG represents a 4.56% stake in CIMB, the second largest bank in Malaysia in terms of assets.

“It’s already done. It was launched two weeks ago and institutional shareholders bought the shares … taken mainly from foreign investors,” Zafrul said.

MUFG first entered into CIMB through a placement of 117 million shares at RM11.41 apiece in February 2007. 

The placement deal by CIMB, then known as Bumiputra-Commerce Holdings Bhd, was estimated to have raised RM1.34bil in capital.

Over the years, MUFG increased its stake to become a substantial shareholder in CIMB. It was counted as one of the top-10 biggest shareholders in CIMB over the last 10 years.

Of late, MUFG, which is one of the largest financial institutions in the world, has been paring down its stake in CIMB. 

It ceased to be a substantial shareholder on April 5 this year after its stake fell below 5% to the current level.

Meanwhile, on Bank Negara Malaysia’s recent announcement of the implementation of the net stable funding ratio (NSFR), Zafrul said the group is ready for the new regulation.

“Every country has its own timeline and we in CIMB will follow our home country’s regulator. 

“I think all the banks here are ready for it,” he added.

NSFR, which will be implemented no earlier than Jan 1, 2019, is an international measure that promotes longer-term resilience of the banking sector.