CIMB Group denies reports of privatizing Indonesian unit CIMB Niaga

CIMB Group Holdings Berhad has denied recent media reports suggesting the Malaysian banking group plans to privatize its Indonesian subsidiary, CIMB Niaga. The company stated that no formal proposal or decision has been made regarding the matter.

Previous reports indicated that CIMB Group was considering a buyout of CIMB Niaga, estimated to cost approximately US$196 million, to address challenges posed by Indonesia’s tightening minimum free-float requirements. Under new regulations, CIMB Niaga would need to increase its free float from roughly 6.6 percent to 12.5 percent by March 2027 and 15 percent by March 2028.

Despite the denial, CIMB Group confirmed that CIMB Niaga remains a vital component of its regional operations in Indonesia and affirmed its commitment to complying with all local regulatory requirements.