Tabung Haji to take up RM216m of Bank Islam preference shares

CASH-RICH Lembaga Tabung Haji, one of three shareholders in Bank Islam Malaysia Bhd (5258), has agreed to take up RM216 million of the bank's preference shares that were renounced by Middle East investor Dubai Group.

Bank Islam expects to receive the money from Tabung Haji by October 15 at the latest, it said in a press statement yesterday.

With that, the bank has managed to meet its objective of raising RM540 million as part of its Tier 1 capital.

Tabung Haji's move, which confirms a Business Times report on Wednesday, means that the pilgrim fund's stake will increase substantially to around a fifth of the bank's upon conversion of the shares.

It now holds just 9 per cent. It however also has a controlling stake in BIMB Holdings Bhd, which owns 51 per cent of the bank.

Tabung Haji, backed by a RM23 billion fund, and BIMB, had earlier taken up their respective portions of the preference shares.

Dubai Group's portion was offered to Tabung Haji and BIMB after the Dubai investor declined its entitlement last week.

BIMB, however, "decided not to take up" its part, which amounted to RM183.6 million, according to the statement. As such, the part was offered to Tabung Haji.

Shares of BIMB, the only Malaysian listed company among the investors, were unchanged at RM1.09 yesterday.