MALAYSIA-BASED CIMB Group Holdings Berhad (CIMB) announced yesterday that it had signed agreements with the Principal Financial Group (Principal) for the latter to increase its ownership in the CIMB-Principal Asset Management Group and CIMB-Principal Islamic Asset Management.
The agreements will increase Principal's stake to 60 per cent with CIMB retaining 40 per cent ownership in both entities. The joint ventures will continue to be co-managed by both companies.
This transaction is expected to be completed in the second quarter of 2018 and is subject to the relevant regulatory approvals.
“As a leading Asean universal bank, asset management continues to be an integral part of our regional banking business. This shareholding realignment will ensure that our asset management joint venture with Principal achieves its maximum potential and continues to sustainably create value for CIMB,” said Tengku Dato' Sri Zafrul Aziz, Group Chief Executive Officer, CIMB Group.