May 5, 2010 / 12:19 AM / in 8 years

Dubai Group may not sell Bank Islam stake - report

KUALA LUMPUR, May 5 (Reuters) - Dubai Group may not be keen to sell its stake in Malaysia’s No. 2 sharia lender Bank Islam, the Business Times reported on Wednesday, citing a source. “They may not sell after all because they see value in the bank,” the source was quoted as saying in a Business Times report.

Dubai Group, an investment vehicle owned by the ruler of Dubai, said last month that its plan to sell Bank Islam was unlikely to be completed by June. The sale was to help the Middle Eastern investor shift its focus closer to home and settle its debt burden.

Dubai Financial Group, a unit of Dubai Group, holds a 40 percent stake in the Malaysian lender, according to Bank Islam’s website.

Both Dubai Group and Bank Islam were not immediately available for comment.

The Business Times report said Dubai Group had initially hired investment bankers Rothschild to find potential buyers.

    Bahrain’s Unicorn Investment Bank has said it was mulling buying Dubai Group’s stake in Bank Islam. [ID:nLDE61E28A]

    Several Islamic bankers have said the Islamic subsidiary of Malaysia’s largest lender Maybank (MBBM.KL) was also keen to take up a stake in Bank Islam. Malaysian Islamic banking group BIMB Holdings Bhd (BIMB.KL) owns 51 percent of Bank Islam, with Lembaga Tabung Haji, or the Malaysian pilgrims fund, holding the remaining 9 percent.

    Click on [ID:nISLAMIC] for more Islamic finance stories and ISLAMIC for a speed guide Reporting by Niluksi Koswanage; Editing by Dhara Ranasinghe

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