'CIMB' targets, Indonesian Exchange

Saturday, May 8, 2010 - 15:17 PM

KUALA LUMPUR Reporting - I will deliver news about the monetary, here's the news .... 'CIMB' Group, a Malaysian investment company, plans to issue shares in the stock of Indonesia. However, the plan can not be realized due to hit the Indonesian capital market regulations that have not allow foreign companies take the floor on the stock in the country.
"We continue to communicate with Bapepam-LK (Capital Market Supervisory Agency and Financial Institution). Hopefully, the capital market regulator provides convenience for foreign companies, "said 'CIMB' Group CEO Dato 'Sri Nazir Razak told a news conference after the implementation of the 53rd Annual General Meeting of 'CIMB' Group in Kuala Lumpur yesterday.

Nazir said the current market capitalization of Malaysia's 'CIMB' Group on the stock reached $ 15 billion. If you can be listed on Indonesia, 'CIMB' hopes to become one of the largest investment companies in ASEAN.

"We want to enlarge our market capitalization on the stock of Asia," he said. He said his company wanted to provide opportunities to the Indonesian public to own shares of 'CIMB' Group through the issuance of the shares. "The people of Indonesia can own shares in addition to 'CIMB' Group 'CIMB' Niaga. If the rules are ready, we will become the first foreign company listed its shares in Indonesia, "he said.

Besides in Indonesia, 'CIMB' Group is also planning to issue shares on the Stock Exchange of Thailand. In that State 'CIMB' aims to improve the branding and positioning in order to attract more Thai customers. "Problems in the ASEAN countries together, namely the absence of strict rules regarding foreign companies. In Malaysia any new start, "he said.

In Thailand 'CIMB' Group has received permission from the authority of the issuance of shares of stock since last year. Issuance of shares will be made on the next July with the number of shares issued reached 100 million shares and a target market capitalization of $ 600-800 million Malaysian ringgit. According to him, 'CIMB' is not affected by the political disputes in Thailand. "On CNN there was a news like that, but we remain on plan," he said.

Indonesia Contributors Biggest Profit

On the other hand, Nazir said, in the next five years to target the Indonesian side could become the biggest profit contributor for this Group.Saat 'CIMB' 'CIMB' Group's profits still come from Malaysia's largest, reaching 70 percent of the total profit in 2009 amounted to $ 6, 4 billion.

Meanwhile, 'CIMB' Group's subsidiary in Indonesia, 'CIMB' Niaga and 'CIMB' Securities, contributing approximately 20 per cent profit. Then from Thailand amounted to one percent, while from Singapore and some other countries 5 percent. "In 2015 Indonesia targeted to contribute about 40 percent of total profits. So maybe the biggest of the entire region, "he said. One effort, by 'CIMB' strengthen the market in Indonesia is by acquiring companies multifinancekecil. 'CIMB' is currently carrying out studies on a number of companies.

"We're more interested in the multi for a motor because it has not got. In addition to the well during the last 10 years otofinance very large market opportunity. We must grab this opportunity, "said 'CIMB' Niaga President Director Arwin Rasyid. Arwin said, there are two companies targeted by the asset value of around Rp1 trillion, but the capital is only one tenth of the value of the asset. The decision to acquire will be achieved in June. "Maybe the end of the month ini.Satu this month. So June was to report, "he said. Nazir added that 'CIMB' Niaga will also strengthen its business lines sharia in Indonesia. Growth prospects for Islamic banking in Indonesia is very big.

This condition is the same as Malaysia, 'CIMB' was able to show themselves as Islamic investment bank and the second largest consumersyariah. Arwin said that Commerce Bank will follow the concept of Islamic bank in Malaysia to adopt a dual banking strategy. All branches sooner or later will provide Islamic products. "So when customers come into our branches, they have a choice to save money on conventional or Islamic," he said. (Otofinance)