CIMB to sell 65 properties to EPF for RM302.5 million

KUALA LUMPUR: CIMB Group Holdings Bhd announced on Dec 30 that it is disposing 65 properties to the Employees Provident Fund (EPF) for RM302.5 million as it is not in the business of owning properties.

The group is expected to gain up to RM171 million from the disposal, it said in a filing to Bursa Malaysia.

The rationale of the disposal is to reduce the group's exposure to property risks as well as to raise money for working capital purposes of CIMB Bank, CIMB Group said.

The properties are presently used to house CIMB Group's banking business operations such as banking branches and banking offices.

The disposal is expected to be completed in the first quarter of 2010, the group said.

It added that CIMB Bank had entered into a lease agreement with EPF for the properties concerned. -- Bernama