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KUALA LUMPUR: BIMB Holdings Bhd (BHB), which owns Bank Islam Bhd, is still keen to acquire a stake or even have a management control in Bank Syariah Indonesia as part of its expansion plan.

It Group managing director and chief executive officer, Johan Abdullah said the talks were still at a preliminary stage, and there was still no material development.

"We may purchase a stake in the bank. However, the scenario has changed. We need to be mindful of the changes in the regulatory environment, the fact that foreigners can't own more than 50 per cent of the equity," he told reporters on the sidelines of the company's extraordinary general meeting here today.

Due to the regulatory uncer­tainty in Indonesia, Johan said that the group would engage the Indonesian authorities before making any decision to acquire a stake in the bank.

Johan was commenting on a report earlier this month that BHB was eyeing a stake in Bank Syariah Indonesia.

"In principle, we want to expand on vivid business objectives. No point expanding regionally when you are not clear of the Indonesian regulations. We want to have a management control," he said, BHB was assessing the situation and the aftermath of the Indonesia presidential election.

"If it's worthwhile then, BHB is willing to look at it. But I believe the pie is big enough, you know, it is so-called standalone and non-leverage with the conventional, we still have a way to go," he added.

At the EGM, shareholders gave their nod to the proposed dividend reinvestment plan that would provide shareholders with the option to elect to reinvest in whole or in part of their cash dividend with the new ordinary shares of RM1 each in BHB.

The DRP is expected to be put in place by the fourth quarter of 2014.-- Bernma