Baker & McKenzie member firm Wong & Partners is advising Malaysian investment company BIMB Holdings Bhd. on its proposed $885 million takeover of Bank Islam Bhd., the country’s oldest Islamic bank.
BIMB Holdings invests in shariah-compliant businesses, or those that operate according to Islamic law. The company already controls 51 percent of Bank Islam and plans to acquire the remaining stake from Malaysia’s Lembaga Tabung Haji and Dubai Financial Group.
Lembaga Tabung Haji provides savings services to Muslims planning pilgrimages to Mecca. Dubai Financial Group is a subsidiary of investment company Dubai Holding, which is controlled by the city’s ruler, Sheikh Mohammed bin Rashid Al Maktoum.
The deal is subject to shareholder and regulatory approvals, and will be financed by a $1.8 billion capital raise. The raise will consist of a rights issue and an Islamic bond issue.
Kuala Lumpur partners Munir Abdul Aziz and Wong Sue Wan are advising BIMB Holdings on the transaction, as well as the rights issue. Kuala Lumpur partner Mark Lim will act for Bank Islam as the lead arranger on the bond issuance.
Zaid Ibrahim & Co. Kuala Lumpur partner Wan Marzimin and Zul Rafique & Partners Kuala Lumpur partner Lukman Sheriff Alias are acting as counsel to Dubai Financial Group and Lembaga Tabung Haji, respectively.