KUALA LUMPUR, Malaysia--CIMB Group Holdings Bhd. (1023.KU), Malaysia's second-largest bank by assets, said Thursday it had signed agreements to divest stakes in two of its asset-management companies to units of Principal Financial Group for MYR470.3 million ($117 million).
CIMB will sell a 20% equity stake in CIMB-Principal Asset Management Bhd. to Principal International (Asia) Ltd, and a 10% equity stake in CIMB-Principal Islamic Asset Management Sdn Bhd. to Principal Financial Services Inc., according to a statement and stock-exchange filing.
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The transaction is expected to be completed in the second quarter of 2018, CIMB said. The bank is expected to recognize a gain of around MYR950 million, according to its stock filing.
Shares of CIMB ended Thursday 0.2% higher at MYR6.75 prior to the announcement.
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(END) Dow Jones Newswires
January 11, 2018 05:14 ET (10:14 GMT)