Jan. 13 (Bloomberg) -- CIMB Group Holdings Bhd., Malaysia’s second-largest bank by assets, is selling shares valued at as much as 2.9 billion ringgit ($892 million) to inject money into its units, cut debt and for working capital.
The Southeast Asian lender is selling 400 million shares at 7.10 to 7.25 ringgit each, according to offer terms obtained by Bloomberg News. That’s a discount of between 0.7 percent and 2.7 percent to last week’s closing price of 7.30 ringgit, before the stock was halted in Kuala Lumpur this morning pending the announcement.
The lender and larger Malaysian competitor Malayan Banking Bhd. have been expanding abroad as the Association of Southeast Asian Nations further opens the region’s markets as it seeks to create an economic zone modeled after the European Union by 2015. CIMB owns banks in countries including Indonesia and Thailand, and bought most of Royal Bank of Scotland Group Plc’s Asia-Pacific cash equities and investment banking units in 2012 to extend its regional reach.
The company has the option to sell an additional 100 million shares if demand warrants, terms of the offer show.
Effendy Shahul Hamid, a CIMB spokesman, declined to comment when phoned at his office in Kuala Lumpur today.
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