BIMB Integrated Annual Report 2019

THE PATH AHEAD OF US BIMB Holdings Berhad (“ BHB ”) proposed to undertake a corporate exercise that aims to unlock significant value for shareholders and transfer its listing status to its wholly-owned subsidiary, Bank Islam Malaysia Berhad (“ Bank Islam ” or “ the Bank ”). The Group takes a dynamic stance in the overall timeline of the exercise as some slight impact is expected due to current market uncertainty and challenges. Unlocking value for sustainable, future growth • Allows the entities to grow independently and deliver sustainable value as they will have more autonomy to pursue their corporate and business strategies and opportunities, as well as focusing on their own capital management initiatives. • Allows for a more streamlined and efficient operational structure that enables stronger earnings accretion through the elimination of, or minimisation of resources and infrastructure duplication. Certainly, it will reduce the complexity of group risk management. • Gives investors flexibility to better manage their investment exposure or to rebalance their portfolios in banking and Takaful industries according to their own investment objectives. • BHB’s proposal to transfer its listing to Bank Islam will give Bank Islam direct access to the equity capital market for fund-raising activities to support its organic growth. • Takaful Malaysia will retain its listing status on Bursa Malaysia and allow investors to participate directly in the equity and future growth of the Takaful business. Proposed corporate exercise involves five components A proposed placement of new shares to raise RM800 million . The proceeds, together with internal cash, will be used to settle outstanding Sukuk held by Lembaga Tabung Haji. A Scheme of Arrangement (“SOA”) to pay warrant holders a cash consideration for the cancellation of their exercise rights in respect to the warrants. An internal reorganisation to dispose its entire stake in its stockbroking and leasing subsidiaries to Bank Islam. BHB’s entire shareholdings in Bank Islam and Takaful Malaysia will be distributed by way of distribution-in-specie to shareholders of BHB. On completion of the distribution-in- specie, BHB shareholders will hold Bank Islam and Takaful Malaysia shares in proportion to their shareholding in BHB. BHB’s listing status will then be transferred to Bank Islam. 01 02 03 04 05 57 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary