CIMB Group Holdings Bhd may earn a one-off gain of RM810 million by reducing its stake in PT Bank CIMB Niaga TBK to meet Indonesia’s proposed 15% minimum free float requirement, according to Hong Leong Investment Bank (HLIB).
Selling about 7.4% of its CIMB Niaga shares would help the Malaysian bank comply with regulations while boosting its capital. The proceeds could be used to support loan growth or reward shareholders with special dividends, HLIB noted. The sale would add to CIMB’s existing RM2 billion capital return plan, potentially raising FY26-27 dividend payout ratio to around 70% and yield to 6.5%.
CIMB currently owns 92.4% of CIMB Niaga, which contributes roughly a quarter of the group’s pre-tax profit. HLIB expects the divestment to have minimal impact on earnings, projecting a 1.2–2% drop in FY26-27 PBT.
Despite the regulatory changes and rupiah volatility, HLIB maintains a “buy” rating on CIMB with a target price of RM9.50, highlighting its dividend yield of over 6% and ongoing capital management programme.
CIMB shares closed at RM8.41, down five sen or 0.59%, giving the group a market cap of RM90.68 billion.
