KUALA LUMPUR Dec 30 Malaysian bank CIMB Group
Holdings Bhd has agreed to sell its 18.21 percent
stake in China's Bank of Yingkou Co Ltd to investment
holding company Shanghai Guozhijie Investment Development Co.
The stake is valued at 972 million ringgit ($216.75
million), according to a statement from CIMB Group, Malaysia's
second-largest lender by assets. The all-cash deal is subject to
regulatory approvals and is expected to be completed in 2017.
"Capital requirements for minority investments in other
banks such as this has continued to increase, so much so that in
time, the returns threshold required to justify this investment
will be too high," CIMB Group Chief Executive Zafrul Aziz said
in the statement.
The disposal was in line with the bank's operating and
capital targets, he added.
CIMB Group last month posted a 26.9 percent rise in net
profit for the third quarter on cost-cutting measures, flagging
stronger loan growth in the months ahead.
For the full statement, refer to: bit.ly/2iLs8oe
($1 = 4.4845 ringgit)
(Reporting by Emily Chow; Editing by Keith Weir)