KUALA LUMPUR: Bank Negara Malaysia (BNM) has extended the deadline for the negotiations among BIMB Holdings Bhd, Dubai Financial Group LLC and Lembaga Tabung Haji (LTH) over the Bank Islam Malaysia Bhd stake to July 31.
BIMB said on Friday that BNM had no objections for the extension of time from June 30 to July 31 following which a formal approval for the proposed acquisition as mutually agreed among the parties shall be sought.
"The parties must ensure the negotiations are completed within the extended deadline of July 31, 2013," said BIMB.
BIMB already owns 51% in Bank Islam. A 30.5% stake is with the Dubai Financial Group (DFG) while 18.5% is held by Lembaga Tabung Haji (LTH).
BIMB is seeking to purchase LTH's stake in Bank Islam. LTH also owns a 51.5% stake in BIMB.
StarBiz had earlier reported it was believed that BIMB's acquisition of DFG's 30.5% stake is almost completed.
To own its unlisted banking unit Bank Islam in its entirety, BIMB may have to fork out RM2.7bil for the remaining 49% stake it does not already own.
According to Maybank Investment Bank Research, the price tag, based on a 1.8 times price-to-book value, may also lead to a rights issue.
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