ANZ cuts Malaysian bank stake after 1MDB settlement

ANZ cuts Malaysian bank stake after 1MDB settlement

ANZ will reduce the value of its stake in its Malaysian subsidiary after AmBank reaches a deal with Kuala Lumpur over the multibillion-dollar 1MDB embezzlement scandal, potentially paving the way for a stake sale.

The Australian bank said Monday it would take a haircut of A $ 212 million ($ 164 million) on the book value of its 24% stake in AmBank, which will drop to A $ 850 million.

AmBank reached a RM2.83 billion ($ 698 million) settlement with Malaysia’s Ministry of Finance on Friday as Kuala Lumpur continues to clean up the scandal involving 1MDB, which the US Department of Justice alleges 4 , $ 5 billion was stolen.

“With this settlement, the payment of the sums will be accelerated, instead of being delayed by long legal battles, and can be used to fulfill the outstanding obligations of 1MDB,” Zafrul Aziz, Malaysia’s finance minister, said in a statement.

Nathan Zaia, an analyst at Morningstar, a research group, said that given ANZ’s A $ 74 billion market capitalization, AmBank’s depreciation was not significant, but the deal would eliminate a risk. for any potential purchaser of the bank’s 24% stake in AmBank. .

ANZ is in the process of selling off a series of Asian investments as it refocuses on its core Australian market. This includes the sale of its 20% stake in Shanghai Rural Commercial Bank for AU $ 1.8 billion in 2017, and the sale of its 55% stake in Cambodian joint venture ANZ Royal Bank to Japanese holding company J Trust in…

Source

News Highlights Finance

  • Headline: ANZ cuts Malaysian bank stake after 1MDB settlement
  • Check all news and articles from the Finance news updates.
Disclaimer: If you need to update/edit/remove this news or article then please contact our support team.
For Latest Updates Follow us on Google News
Bollyinside - US Local News & Breaking News Stories
Logo
Compare items
  • Total (0)
Compare
0