DUBAI, 1 July 2006 — Dubai Financial (DF), a subsidiary of the Dubai Investment Group (DIG) — the global financial investor of Dubai Holding — has taken a 40 percent stake in Malaysia’s oldest Shariah compliant bank. The transaction is subject to approval of Bank Negara for the shares to be issued free from encumbrances.
Bank Islam, Lembaga Tabung Haji and DF signed three agreements, constituting a shareholders agreement, between BIMB Holdings Berhad, Lembaga Tabung Haji (LTH), Dubai Financial LLC and Bank Islam Malaysia Berhad; a subscription agreement between the bank, its holdings company and majority shareholder Tabung Haji; and a separate subscription agreement between the bank, its holdings parent and Dubai Financial LLC. DIG CEO Soud Baalawy commented: “We believe in the Malaysian market and this acquisition provides an excellent opportunity for Dubai Financial to add one of the oldest and most reputable Islamic institutions to our portfolio, thus enabling Dubai Financial to build on its strategic direction to grow within the Islamic banking sector. Noorazman A. Aziz, group managing director of BIMB Holdings, stated: “The agreements will cast BIMB as a leading domestic and international Islamic financial player, while at the same time, provide recapitalization for the bank. “We are optimistic this will push Malaysia into the forefront of Islamic banking, helping this country realize its vision to be a hub. In addition, with the involvement of Dubai as a shareholder of BIMB, Bank Islam will now become the official banker for the Middle Eastern group to grow its financial services base,” he said.