Wong & Partners, the Malaysian member firm of Baker & McKenzie International, acted for BIMB Holdings Berhad (“BHB”) in connection with the proposed acquisition of a 49% stake in Bank Islam Berhad, Malaysia’s original Islamic bank, from the Dubai Financial Group LLC and Lembaga Tabung Haji for a total purchase consideration of approximately USD885 million (RM2.8 billion).
Completion of the transaction is subject to shareholder and regulatory approvals and successful fund-raising by way of a rights issue (expected to raise RM1.536 billion) and a sukuk issuance (expected to raise RM1.471 billion). The total value of the deal, taking into account the fund raising aspects is therefore approximately RM6 billion.
Partner Munir Abdul Aziz led the team, assisted by partner Wong Sue Wan and associate Adrian Wong on the M&A elements of the deal. The same team will also advise on the rights issue while partner Mark Lim and senior associate Esther Chik will advise Bank Islam (as lead arranger) in relation to the sukuk issuance.
Munir, the Firm’s corporate and commercial partner, said of their involvement in this matter, “It was a pleasure working with the BHB team. We are very pleased with the successful outcome of the deal and we are privileged to have had the opportunity to represent BHB on this landmark transaction.”
“We would like to thank Wong & Partners for working with us on this important transaction. Their input proved to be important in shaping and concluding the transaction and we appreciate the commitment that was put in by the team,” said a BHB representative.
Established in 1997, BHB acts as an investment holding company for Malaysia’s pioneer Shariah-compliant business entities, involve mainly in Islamic banking, takaful and stockbroking.
Bank Islam is Malaysia’s maiden Shariah-based institution. It provides more than 70 innovative and sophisticated Islamic banking products and services to its customers through 130 branches and more than 1000 self-service terminals across the country.
