* CIMB group CEO Nazir to take over as chairman
* New CEO to be announced once approvals obtained
* State investor Khazanah appoints Nazir to its board
* Shares of CIMB end 0.7 percent lower
(Add details, context, Nazir quote)
By Yantoultra Ngui
KUALA LUMPUR, July 3 CIMB Group Holdings Bhd,
Malaysia's second-largest bank by assets, said on Thursday its
group chief executive Nazir Razak would relinquish his post and
take over as chairman from September.
A new group CEO will be announced once regulatory approvals
have been obtained, while current chairman, Md Nor Yusof, will
retire from the board and join the group's international
advisory panel, CIMB said in a statement.
State investor Khazanah Nasional Bhd, in another
statement, said it was appointing Nazir to its board of
directors with effect from September.
Khazanah is CIMB's largest shareholder with a 29.2 percent
equity stake, Reuters data showed.
Under Nazir, CIMB, also southeast Asia's fifth-largest bank,
has boosted regional operations over the past decade and
expanded its investment banking capabilities by acquiring parts
of Royal Bank of Scotland's Asia operations outside
Last year, CIMB became the only Asian bank to win a mandate
to advise Warrnambool Cheese and Butter Factory Co, the
target of a multi-billion three-way global takeover battle in
"CIMB has grown tremendously in scale and breadth in the
last few years and it is timely that we institutionalise a more
progressive balance between the roles of the board and
management," Nazir said in the statement.
"With that and in my new role as chairman, I will be
actively supporting the management team, especially in strategic
Nazir, who is the younger brother of Malaysian Prime
Minister Najib Razak, will chair an executive committee of the
board at CIMB that will be established to focus on strategic
matters and enhance the board's oversight functions.
He will continue to serve as president commissioner of PT
Bank CIMB Niaga and deputy chairman of CIMB Bank and will be
nominated chairman of CIMB Investment Bank with effect from
Sept. 1, 2014, according to the statement.
Shares of CIMB ended 0.7 percent lower at 7.30 ringgit,
while the broader index rose 0.1 percent.
(Additional Reporting by Anuradha Raghu; Editing by Ron Popeski
and David Holmes)