KUALA LUMPUR: AMMB Holdings Bhd (AmBank Group) said it will record an estimated net gain of RM229.94 million from the sale of AmBank (M) Bhd and AmBank Islamic Bhd’s non-performing loans (NPLs) to Aiqon Capital Group Sdn Bhd’s special purpose vehicles (SPVs).
The related party transaction was first announced on Jan 3, when it said AmBank and AmBank Islamic’s NPLs totalling RM553.91 million would be sold to the SPVs.
Aiqon Capital is controlled by Ibrahim Hussain, the son-in-law of AmBank Group’s substantial shareholder, Tan Sri Azman Hashim.
The disposal, now completed, was part of the group’s debt recovery strategy to strengthen both AmBank and AmBank Islamic’s respective loan/financing management, resolution processes and to monetise the portfolios.
The group previously said proceeds from the proposed disposal would be used by AmBank and AmBank Islamic for working capital within a year of the deal’s completion.