KUALA LUMPUR Feb 23 Malaysia's oldest
Islamic lender Bank Islam Malaysia Bhd may assume the listing
status of its parent company BIMB Holdings Bhd, the
Business Times said on Thursday, citing unidentified sources.
BIMB, which owns 51 percent of Bank Islam, is discussing the
move that will simplify BIMB's group structure and potentially
improve valuations, one of the sources told the widely read
Listing Bank Islam -- which is the second largest sharia
bank in Malaysia -- may give investors direct exposure to the
fast-growing Islamic banking operations, analysts have said.
BIMB and Bank Islam officials were not immediately available
for comment on the report.
Bank Islam Managing Director Zukri Samat had earlier said
the listing proposal could be an option as it would give the
bank flexibility in raising capital for future expansion.
But the move may dilute the current 30.5 percent stake held
by Dubai Group LLC, pushing the firm to either raise objections
to the listing or sell out.
Shares of BIMB fell 0.5 percent as of 0151 GMT, compared to
the broader market, which barely moved.
(Reporting By Anuradha Raghu; Editing by Niluksi Koswanage)