Posted by Arif Safwan Abdullah > 2019-12-11 16:48 | Report Abuse

damiantreez what do this means? Will bimb separate with takaful? If it did, this means bad news..takaful is the cash cow

Posted by damiantreez > 2019-12-11 16:56 | Report Abuse

bimb will separate with takaful > sold all business to bank islam > bank islam will be listed instead > all Bimb shareholders get Bank Islam share and also Takaful shares respective of their equity holding > achieve potential earnings accretion through the elimination of, or minimisation of resources and infrastructure duplication as well as reducing the complexity of group risk management

this is good news

Posted by Arif Safwan Abdullah > 2019-12-11 17:06 | Report Abuse

damiantreez thanks for the explanation

Posted by PotentialGhost > 2019-12-11 17:31 | Report Abuse

How about the Bimb Wa ?

Posted by damiantreez > 2019-12-11 18:50 | Report Abuse

bimb wa holders will get cash 26 sen per share to cancel their rights to convert to mother share

Posted by lloydlim > 2019-12-11 19:28 | Report Abuse

Oh shit! I holding wa so only could cash out with 26cts per wa?

Posted by lloydlim > 2019-12-11 19:28 | Report Abuse

http://www.enanyang.my/?p=1329978

Posted by Ncm88 > 2019-12-11 21:00 | Report Abuse

What happen?

Posted by gemfinder > 2019-12-11 22:57 | Report Abuse

Bad news. Tomorow bimb n takaful gap down

Posted by samyew1234 > 2019-12-11 22:57 | Report Abuse

gg habis, sell, omg

Posted by einvest88 > 2019-12-11 23:07 | Report Abuse

Any idea BIMB shareholder get how many share of Takaful?

Posted by einvest88 > 2019-12-11 23:10 | Report Abuse

BIMB will do par value reduction but maintain no of shares to exchange 1 for 1 with Bank Islam shares

Posted by einvest88 > 2019-12-11 23:16 | Report Abuse

Distribution and Capital Repayment.
After the completion of the Placement, the SOA, the Internal Reorganisation, BHB’s entire shareholdings in Bank Islam and Syarikat Takaful Malaysia Keluarga Berhad (STMKB) will be distributed by way of distribution-in-specie to the shareholders of BHB.

Prior to the proposed distribution and capital repayment, BHB will undergo a capital reduction and Bank Islam will undertake a share consolidation. This is to match BHB’s outstanding shares so that the distribution of Bank Islam shares will be on a one-for- one basis.

The basis of distribution and entitlement of STMKB shares will be determined at a later date.

Posted by einvest88 > 2019-12-11 23:18 | Report Abuse

In short, BIMB holder will still get equal amount of share in Bank Islam plus free Takaful shares...so BIMB price likely be up

Posted by einvest88 > 2019-12-11 23:37 | Report Abuse

BIMB own 60% of Takaful...equal to 496m shares. BIMB total share 1764m, so every BIMB share possible get not more than 496/1764=0.28 Takaful.

Posted by einvest88 > 2019-12-11 23:42 | Report Abuse

Assuming Takaful at 6, 0.28*6=1680 therefore BIMB potential future price approx 6

Posted by paperplane > 2019-12-12 07:26 | Report Abuse

*BIMB Holdings (BIMB MK/BUY/TP:RM5.00)*

*Newsbreak:* BIMB is undertaking a group restructuring exercise through a series of moves: (i) raise RM800m via placement to pare down its outstanding sukuk (held by Lembaga Tabung Haji) and retire existing warrants (at 26sen/unit), (ii) cash disposal of BIMB Securities and Syarikat Al Ijarah to Bank Islam (priced at net assets, amounting to RM115m), (iii) distributing the stake in Bank Islam and Syarikat Takaful to investors, and (iv) transfer listing status to Bank Islam. The entire exercise is expected to complete in 3Q20.

*HLIB’s view:* Finally unveiled its corporate restructuring exercise and the architecture is similar to prior market speculation. This is positive as it helps to unlock value. Assuming a VWAP of RM4.30/share and placement is done at a 5% discount (this cannot be more than 10%), share base will be enlarged by 11%. We estimated that investors will be entitled to 1.28 of Bank Islam and 0.25 Syarikat Takaful shares for every 1 BIMB share held (w/o the placement exercise it would be higher at 1.42 and 0.28 respectively).

*Forecast:* Unchanged.

*Recommendation:* Retain BUY and GGM-TP of RM5.00, based on 1.42x 2020 P/B. This is largely in line to its 5-year mean of 1.45x but ahead of the sector’s 1.00x. The premium is fair given its 4ppt above-average ROE generation. Also, from our reverse SOP assessment, we calculated the market is only valuing Bank Islam (100%-owned) at 0.83x P/B with 10-11% ROE vs. peers at 1.00x P/B with 10% ROE, implying there is upside from current levels.

Posted by damiantreez > 2019-12-12 08:21 | Report Abuse

So 1-1 share for bank islam and free takaful share. Seems good.

Posted by damiantreez > 2019-12-12 08:39 | Report Abuse

Maybank raised TP by 45 sen to RM5.25

Posted by Kadir > 2019-12-12 09:41 | Report Abuse

Guys...this is THE news ..worth waiting all this time

Posted by Kadir > 2019-12-12 10:03 | Report Abuse

paperplane....don't b disheartened. At least cn gain smething

Posted by GLNT > 2019-12-12 10:03 | Report Abuse

Not attractive I think?...Bank Islam earned about 560mil per year ex-Takaful. Give PER of 10x (which is considered on the high side vs peers and current valuation is mainly driven by growth in Takaful earnings), market cap RM5.6bil. Divide by 1.95bil of shares (enlarged capital), per share is worth RM2.87. Add another RM1.50 worth of Takaful, valuation is just about right at this price =>RM4.37. Unless you give a higher PER of 11x (RM4.66)? 12x (RM4.95)?

Posted by GLNT > 2019-12-12 10:05 | Report Abuse

Or just want free money? BIMB-WA collect at RM0.235 (If you can get), get risk-free return of 10% in less than a year or RM0.24 (8%), RM0.245 (6%++).

Posted by Kadir > 2019-12-12 10:05 | Report Abuse

Now cn switch to semicon counters.

Posted by Kadir > 2019-12-12 10:23 | Report Abuse

paperplane..thanks.. anyway only cherry picking some potential stocks..haha

Posted by Siew Jian Bin > 2019-12-12 10:30 | Report Abuse

Q3 2020 will complete this restructuring? Still need more than a 9 months? Anyone can advise?

Posted by Kadir > 2019-12-12 10:53 | Report Abuse

Sure Juan Bin...This talk of restructuring has been on fr a couple of yrs. Nw is implementation time. Just don't miss the chance

Posted by paperplane > 2019-12-12 10:58 | Report Abuse

The long-awaited restructuring exercise of BIMB HOLDINGS BHD, which includes the transfer
of its listing status to Bank Islam Malaysia Bhd by end-September 2020 and a RM800mil cash
call, has been announced. Bank Islam will be the fourth Malaysian bank since 2016 to assume
the listing status of its parent BIMB, following in the footsteps of peers such as Alliance Bank
Bhd, Affin Bank Bhd and RHB Bank Bhd. Currently, Bank Islam is wholly owned by BIMB – the
country’s eighth-largest banking group by market value. Lembaga Tabung Haji (TH) is the
controlling shareholder of BIMB with a 53.8% stake, followed by other top owners, namely, the
Employees Provident Fund (12.5%), Permodalan Nasional Bhd (5.4%) and Skim Amanah
Saham Bumiputera (21.5%). In its filing with the stock exchange yesterday, BIMB announced
that its proposed corporate restructuring would involve five components, allowing the group to
“unlock significant value for shareholders”. BIMB will place out new shares to raise RM800mil,
which together with RM122.2mil internally-generated cash, will be utilised to fully settle its
outstanding sukuk worth RM922.2mil held by TH. “The proposed sukuk redemption is expected
to result in finance cost savings of RM52.8mil per annum based on the effective profit rate of
6.25% per annum. The placement shares will be placed to investors to be identified at a later
date. For illustrative purposes only, assuming a 5% discount to the five-day volume weighted
average price (VWAP) of BIMB shares up to and including Nov 15 of RM4.30, the illustrative
issue price would be RM4.09 per placement share. “Based on the intended gross proceeds
(RM800mil) and the illustrative issue price, the placement shares to be issued pursuant to the
proposed placement are 195,599,022 BIMB shares, representing 11.1% of the issued share
capital of BIMB, ” it said. The second component of the banking group’s restructuring exercise
is the scheme of arrangement (SOA) to settle BIMB’s outstanding warrants, which will be paid
using internally-generated cash. BIMB will pay 26 sen per warrant, based on the five-day VWAP
of the warrants up to and including Dec 10. The SOA is expected to incur about RM110.9mil,
but is subject to change according to the number of outstanding warrants as at the entitlement
date. Upon the completion of the private placement and SOA, BIMB will also undertake an
internal reorganisation to dispose of its 100% stake in its leasing subsidiary, Syarikat Al-Ijarah
Sdn Bhd, and stockbroking subsidiary, BIMB Securities (Holdings) Sdn Bhd to Bank Islam.

Posted by Kadir > 2019-12-12 11:07 | Report Abuse

paperplane...thanks

Posted by AlgoQuant > 2019-12-12 16:58 | Report Abuse

BIMB Holdings - Post-Restructuring Details
Author: kiasutrader | Publish date: Thu, 12 Dec 2019, 11:54 AM

Losing out on Takaful contribution. Post-restructuring, the new entity will lose a chunk its top-line (9MFY19 contribution from Syarikat Takaful (STM) is 34%) as Bank Islam will become a full-fledged banking entity with STMKB to be stripped of from the new entity. Assuming the exercise is completed by end 3QCY20, we estimate that our FY20E earnings will be shed by ~29%. At a book value of RM5.32b and shares of Bank Islam at 1.96b (post-restructuring), we estimated that ROE of the new entity will be at 10.5% with a book value of RM2.71 per share.

(link to the above Kenanga research report - https://klse.i3investor.com/servlets/staticfile/375605.jsp)

As the upside for BIMB and BIMB-Wa is limited perhaps investors in this forum would like to switch and invest directly in the actual growth driver to BIMB's results which is Syarikat Takaful Malaysia Keluarga Berhad (which has declared record high dividends of 20c ex-date 18 Dec 2019)

Posted by Kadir > 2019-12-12 17:29 | Report Abuse

Look at bimb peers aft restructuring...where r they now, that's a guide

Posted by gemfinder > 2019-12-12 18:00 | Report Abuse

No gap down consider lucky...

Posted by Kadir > 2019-12-13 09:56 | Report Abuse

Shld b up first

Posted by GLNT > 2019-12-13 16:37 | Report Abuse

Buy BIMB-Wa at RM0.23 can get 13percent return in less than a year. Can BIMB fly to RM5 fr current levels.

Posted by GLNT > 2019-12-13 16:37 | Report Abuse

Risk-Free money 13% return

Posted by Davidl > 2019-12-13 22:57 | Report Abuse

I prefer 20% if any

Posted by Matcha Green Tea > 2019-12-15 12:44 | Report Abuse

What are the chances of the risk free 0.26 cent WA settlement become uncertain?

Posted by GLNT > 2019-12-16 09:47 | Report Abuse

Davidl, BIMB is worth RM5.40? Ok....

Posted by Kadir > 2019-12-16 12:52 | Report Abuse

GLNT...must hit 4.55 + first

Posted by Kris Wong > 2019-12-17 09:31 | Report Abuse

Win-win for BIMB-WA. If restructuring successful, risk free 26 sen. if not successful, WA price likely to recover strongly to previous higher level !!!

Posted by Syndicates > 2019-12-17 11:14 | Report Abuse

don promote lah. more u promote less profit u gain. we should coorporate, dont buy until it drop till 20% discount

Posted by techlee229 > 2019-12-17 13:49 | Report Abuse

Details of the long awaited restructuring have been announced
Bank Islam will finally take over the listing status
Split of the Group, between Bank Islam and STMB
Shareholders will get the chance to own STMB directly
Maintain earnings forecast for now as some details yet to be determined
Maintain BUY with unchanged TP of RM5.05

Posted by Kadir > 2019-12-17 17:18 | Report Abuse

techlee229.... technically agreed

Posted by Kadir > 2019-12-18 11:08 | Report Abuse

Already going to test 4.5

Posted by Kadir > 2019-12-19 11:39 | Report Abuse

Am thinking of switching from asb to bimb..since asb div is low this yr n next .. probably

Posted by Kadir > 2019-12-19 11:40 | Report Abuse

asb is the bumiputera fund.

Posted by damiantreez > 2019-12-23 17:18 | Report Abuse

looking good

Posted by nickthebest > 2019-12-25 10:16 | Report Abuse

Whats with BIMB and its warrant?

Posted by Multibagger > 2019-12-28 12:23 | Report Abuse

https://m-bagger.blogspot.com/2019/12/success-of-bimb-restructuring-minority.html

Just my thought

Posted by taitaumau > 2019-12-29 10:37 | Report Abuse

Announcement says the Proposed SOA is not conditional upon other proposals (The Proposed Placement, Proposed Internal Reorganisation, Proposed Distribution and Capital Repayment and Proposed Transfer of Listing )

If SOA is voted down in CCM, will BOD proceed with other proposals as planned ?

If yes, it makes no sense for warrant holders to cast against vote during CCM.