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UPDATE 1-Malaysia's CIMB Group CEO gives up post, takes over as chairman
July 3, 2014 / 10:32 AM / 3 years ago

UPDATE 1-Malaysia's CIMB Group CEO gives up post, takes over as chairman

* 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 (Reuters) - 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 Japan.

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 Australia.

“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 matters.”

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)

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