Restructuring financial group still unsure on takaful firm’s fate

Group still not sure how Islamic insurance subsidiary figures in reorganization

Restructuring financial group still unsure on takaful firm’s fate

Insurance News

By Gabriel Olano

BIMB Holdings Bhd, a Malaysia-based financial group currently undergoing restructuring, has yet to make a final decision on its planned disposal of its 59.9% stake in its Islamic insurance unit Syarikat Takaful Malaysia Bhd (Takaful Malaysia).

Group CEO Datuk Seri Zukri Samat said that BIMB has yet to submit a proposal to Bank Negara Malaysia about the divestment of Takaful Malaysia.

He said that the group is currently reviewing its structure, including the strategic directions of its core subsidiaries, which include Takaful Malaysia, BIMB Securities, and Bank Islam Malaysia Bhd.

“At this juncture, we’ve not come to that stage (deciding on whom to sell Takaful Malaysia to) yet,” Zukri was quoted by The Sun Daily. “We’re still reviewing the structure with the best way to go forward, whether to sell Takaful Malaysia or not. We’re still contemplating.”

The restructuring of the company is in compliance with the Financial Services Act 2013, which evaluates the obligations and responsibilities of the group. Zukri added that BIMB must consider whether its current structure can provide shareholders optimal value. The restructuring also includes the possibility of transferring its listing status.

Zukri however hinted that the group could bring in a strategic investor for BIMB Securities, which, according to Zukri, is currently not contributing much to the group’s income.

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