CIMB selling properties for RM302mil

KUALA LUMPUR: CIMB Group Holdings Bhd said yesterday that it is disposing 65 properties to the Employees Provident Fund (EPF) for RM302.5mil as it is not in the business of owning properties.

The group was expected to gain up to RM171mil from the disposal, it said in a filing with Bursa Malaysia.

The rationale of the disposal was to reduce the group’s exposure to property risks as well as to raise money for working capital purposes of CIMB Bank, the group said.

The properties are presently used to house CIMB Group’s banking business operations such as banking branches and banking offices.

The disposal is expected to be completed in the first quarter of 2010, it said.

It added that CIMB Bank had entered into a lease agreement with EPF for the properties concerned.

By Bernama