CIMB Group Holdings Bhd’s shares on Bursa Malaysia took a hit today on news of its connection with troubled Singaporean oil giant Hin Leong Trading, which owes almost US$4 billion (RM17.4 billion) to more than 20 banks.
At the close, CIMB Group’s shares slipped 12 sen to RM3.49, with 44.74 million shares transacted.
It was reported that CIMB Group is believed to be the Malaysian bank that has exposure of about US$120-US$130 million to Hin Leong.
AffinHwang Capital said that other global banks with major exposure to Hin Leong include HSBC Holdings Plc, ABN Amro Bank and DBS Bank Ltd.
“We understand that Hin Leong and its sister company, Ocean Tankers, which owns more than 100 cargo ships, have both filed for bankruptcy protection last Friday, which will give the companies 30 days to restructure their debt.
“The Singapore police had also announced that they have launched an investigation into Hin Leong after the group’s US$800 million oil losses,” AffinHwang Capital said in a research note today.
It added that the gap between the company’s assets and its liabilities was reportedly at US$3.34 billion.
Meanwhile, it was reported that former Permodalan Nasional Bhd CEO Abdul Rahman Ahmad has been tipped to be the next CEO of CIMB Group Holdings.
Quoting sources, a report said that the position has been vacant since early last month when Tengku Zafrul Tengku Abdul Aziz was appointed finance minister on March 9.
In response to the news, CIMB said it does not comment on reports that are speculative in nature, adding that succession for the post is in progress and that the group will inform the market once it has confirmed its decision.
– Bernama
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.