Malaysia’s CIMB Group Holdings is considering taking its Indonesian subsidiary PT Bank CIMB Niaga private, as the banking group weighs options to meet Indonesia’s minimum public shareholding requirements amid weak equity market conditions.
CIMB Investment Bank, the group’s investment banking arm, said privatisation was currently the most strategic and credible of the three options under consideration for CIMB Niaga, alongside placement of shares to strategic investors and conducting a re-IPO, as cited in The Edge Malaysia.
The potential delisting plans are at a preliminary stage, with regulatory hurdles to overcome, according to research notes and analyst comments following a briefing by CIMB management.
CIMB needs to reduce its stake in CIMB Niaga to comply with Indonesia’s revised free-float rules. The regulations require the group to lower its ownership from 91.4% to at least 87.5% by March 2027 and 85% by March 2028.
However, recent volatility in Indonesian equities has weakened the prospects for a new share offering. Global index provider MSCI has warned that it could downgrade Indonesia from emerging-market to standalone-market status, citing concerns over market transparency and trading practices. The warning has triggered a sharp sell-off in Indonesian stocks.
CIMB Investment Bank said the group continued to view CIMB Niaga as undervalued and remained positive on Indonesia’s long-term prospects. It cited the Indonesian lender’s positions in wealth management, corporate banking, affluent banking, Islamic banking and regional connectivity.
A privatisation could involve a full buyout of minority shareholders or arrangements allowing some minority investors to retain a residual stake after delisting. CIMB has cited previous minority ownership arrangements involving its Thai and Malaysian banking units as possible precedents.
MBSB Investment Bank estimated that buying out minority shareholders at CIMB Niaga’s share price of 1,550 rupiah would cost around 2.95 trillion rupiah ($164 million), while a 30% premium would raise the consideration to 3.84 trillion rupiah ($213.5 million).
CIMB Niaga has been listed on the IDX since 1989 under ticker BNGA. It was trading at 1,585 rupiah apiece on Wednesday (Oct. 21), down by 10.45% since early this year.
Its assets rose 2.5% to 382 trillion rupiah year-to-date as of the first six months of 2026, making the private bank the second largest in the country after Bank Central Asia with 1,661 trillion rupiah.
The potential move follows CIMB Group’s delisting of its Thai banking subsidiary, CIMB Thai Bank, from the Stock Exchange of Thailand in September.
CIMB Thai’s shares were delisted effective September 12, following changes to the exchange’s minimum free-float requirements. CIMB Group said the delisting would not materially affect the bank’s customers, operations, financial strength or regulatory standing. CIMB Thai continues to operate as part of the group’s regional banking network.
CIMB Group has not announced a final decision on CIMB Niaga’s listing status. Any delisting would require further consideration of regulatory requirements, transaction structure and the interests of minority shareholders.
