UPDATE
CIMB Group Holdings Bhd’s shares on Bursa Malaysia took a hit today on news of its connection with troubled oil trader Hin Leong Trading, which owes almost US$4 bil to more than 20 banks.
The counter closed down 12 sen to RM3.49, with 44.74 million shares traded.
Recent news reports said CIMB is believed to be the Malaysian bank which has an exposure of approximately US$120-130 mil to Hin Leong.
AffinHwang Capital said 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, both filed for bankruptcy protection last Friday, which will give the companies 30 days to restructure their debts.
“The Singapore police had also announced that they have launched an investigation into Hin Leong after the group’s US$800 mil 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 bil.
Meanwhile, according to the latest news reports, Datuk Abdul Rahman Ahmad, former CEO of Permodalan Nasional Bhd, has been tipped to be the next CEO of CIMB Group Holdings.
The position has been vacant since early last month when Tengku Datuk Seri Zafrul Tengku Abdul Aziz was appointed as Finance Minister on March 9.
In response to the news, CIMB said it does not comment on reports which are speculative in nature, adding that the succession for the post was in progress and that the group would inform the market once it has material updates. — April 22, 2020, Bernama
