CIMB Explores Privatization of Indonesian Operations Amid Market Rules
1 report, 1 independent
Updated Wed 00:00
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What happened
CIMB is exploring the privatization of its Indonesian operations, as challenging market conditions have reduced the prospects for a secondary share offering. Analysts estimate that the buyout of the Indonesian arm could cost approximately US$196 million. This consideration follows Indonesia tightening its minimum free-float requirements for its stock market.
From businesstimes.com.sg
Why it matters
The move is driven by regulatory changes in Indonesia, which requires CIMB Niaga to meet a minimum free float of 12.5 per cent by March 2027 and 15 per cent by March 2028. CIMB currently holds about 91.4 per cent of the bank, and a potential MSCI reclassification of Indonesia could complicate meeting these requirements.
From businesstimes.com.sg
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