BIMB Holdings currently owns 49% stake of Bank Islam and the recent acquisition, which completed on 31 July 2013, will enable it to strengthen its banking business in the country.
In October 2006, the Dubai-based financial institution purchased a 40% stake in Bank Islam for approximately $224m and later its shareholding was diluted to 30.5% in 2009 due to DFG’s non-participation in the capital increase exercise.
Commenting on the deal, Dubai Group CEO Fadel Al-Ali said, "The sale of our stake in Bank Islam stems from a strategic plan to support broader ongoing restructuring process by selling assets at the right value."
Set up in 1983 as an Islamic bank, Bank Islam manages a branch network of more than 127 offices. Following DFG’s acquisition, the total assets of the lender rose from MYR14.6bn ($ 4.5bn) in 2006 to MYR37.4bn ($11.5bn) by the end of 2012.
In June this year, the company divested its credit card operation The Dubai First to Abu Dhabi based First Gulf Bank (FGB) in a deal reached at $164m.
