KUALA LUMPUR (April 15): Bank Islam Malaysia Bhd announced that UK-based Arabesque Asset Management Ltd has exercised a call option to take up 7.35 million shares representing a 49% stake in its wholly-owned fund management firm BIMB Investment Management Bhd for RM14.7 million or RM2 per share.

In a bourse filing, Bank Islam said Arabesque has up to 10 years from the completion date of the call option to pay/satisfy some or all of the call option price for the shares by cash or by setting off and paying to Bank Islam the dividends that Arabesque will receive from BIMB Investment.

Bank Islam said Arabesque, a wholly-owned unit of Arabesque Holding Ltd (formerly Arabesque Asset Management Holding Ltd), has been in a strategic partnership with BIMB Investment since 2015, and that Arabesque is a company with advanced research capabilities on sustainability and artificial intelligence research, with a track record of delivering syariah-ESG investment products and advisory across asset classes and strategies.

"Bank Islam had executed the 'Call Option Deed' with Arabesque on Oct 9, 2018 and Supplemental Call Option Deed on June 21, 2021. Pursuant to the signing, Arabesque was granted and accepted the Call Option to purchase up to 49% of the Call Option Shares from Bank Islam together with all rights, interests, entitlement, and benefits attached thereto at the Call Option Price within 10 years from the date of signing, pursuant to the terms and conditions set out in the Call Option Deed.

"We wish to announce that the Securities Commission has given its approval on the proposed change of shareholdings in BIMB Investment on 15 April 2022," it added.

Bank Islam shares closed 4 sen or 1.38% higher at RM2.93 on Friday, giving it a market capitalisation of RM6.23 billion.