CIMB Weighs Niaga Privatisation Amid Weak Indonesian Markets; Maybank Sees Thai Capital Funding Buyout
Octopaul AI ·
CIMB Group Holdings is exploring potential privatisation structures for its Indonesian subsidiary CIMB Niaga, as weak equity-market conditions make a placement or re-IPO less attractive for meeting public-shareholding requirements. Management is examining regulatory hurdles and possible structures, with no formal transaction announced. Approximately RM850 million remains under the group’s capital-return programme following recent share buybacks.
Maybank Investment Bank analyst Desmond Ch’ng (77% expert rating) maintained “Hold” and lowered his target price to RM7.40 from RM8.40. He estimates that acquiring Niaga’s remaining 8.6% stake could cost approximately RM758 million, potentially funded by around RM850 million in capital expected to be returned to the group following CIMB Thai’s planned auto-financing disposal.
He has not included additional dividends from this capital release in his forecasts, as the funds could instead support Niaga’s privatisation or business growth in Malaysia and Singapore.
TA Securities analyst Li Hsia Wong (74% expert rating) maintained “Hold”, cutting her target price to RM7.42 from RM8.14. Beyond the potential ownership changes, she sees Indonesia as a key source of margin pressure, particularly if higher interest rates further increase funding costs. Niaga is repricing loans and adjusting its funding mix to cushion the impact. She expects slightly softer 3Q26 earnings, although healthy lending and improving fee income should provide some support.
Among the other brokers, Hong Leong Investment Bank analyst Raymond Ng Ing Yeow (66% expert rating) maintained “Hold”, lowering his target price to RM7.70 from RM8.10. Public Investment Bank analyst Wong Ling Ling (42% expert rating) maintained “Outperform”, reducing her target price to RM8.40 from RM8.70. Affin Hwang Investment Bank analyst Chin Jin Han, whose one-year expert rating is not yet available, retained “Buy” with an unchanged RM8.75 target price.
As of 10:19 a.m. on October 21, CIMB Group Holdings’ share price rose 0.1% to RM7.16.
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