KUALA LUMPUR, June 12 (Reuters) - Malaysia’s second largest lender, CIMB Group Holdings Bhd, it was still in talks to buy a 58 percent stake in San Miguel Corp’s banking unit, state news agency Bernama said on Tuesday, citing CIMB’s chief executive.
“We are still in negotiations with San Miguel on the transaction. We are making progress and will make the announcement at the right time,” Bernama quoted Nazir Razak as saying.
Nazir’s comment comes a day after San Miguel’s president, Ramon Ang, said both parties had concluded a $300 million deal that involved the Manila-based conglomomerate selling a controlling stake in its unlisted Bank of Commerce unit to the Malaysian lender.
There has been a delay in closing the deal due to issues related to the bank’s IT infrastructure and property holdings.
Both companies are counting on the deal to close quickly. For San Miguel the sale provides more funds to use for acquisitions and expansion while CIMB gets a foothold in the Philippines as part of its regional expansion. (Reporting by Niluksi Koswanage; Editing by Greg Mahlich)