CIMB Bank to acquire 16 properties from EPF for RM209.81mil

KUALA LUMPUR: CIMB Bank will acquire 16 properties from the Employees Provident Fund (EPF) Board for RM209.81mil cash, ahead of the expiry of its lease for these properties on June 30, 2025.

CIMB Group Holdings Bhd, the holding company of the bank, said in a filing with Bursa Malaysia it had entered into sales and purchase (S&P) agreements with the EPF - which is a major shareholder in the group - to acquire 16 of the 24 properties that are presently being utilised by CIMB Bank for its banking business.

Wth the signing of these S&P agreements on April 30, 2025, CIMB Bank terminated the lease agreement with the EPF.

The remaining eight properties will be repurchased at a pre-determined price based on a valuation provided by an independent valuer in the event of the EPF is unable to dispose of these properties to third parties.

The group noted the obligation to repurchase the unsold properties by CIMB Bank is consistent with the terms of the lease agreement.

According to the group, the properties were part of the sale and leaseback transaction executed between the EPF and CIMB Bank in 2009 for a period of 15 years.

"As the lease agreement is set to expire on 30th June 2025, the properties repurchased will be retained for use in CIMB Bank's ongoing banking business.

"The transaction supports CIMB Bank's strategy and achieves favorable profit and loss uplift in 2025," it said.