Malaysia’s CIMB Group Holdings has agreed to offload its 18.21% stake in China’s Bank of Yingkou (BYK) to Shanghai Guozhijie Investment Development in an all-cash deal valued at MYR972m ($216.6m).

The Malaysian lender also signed a long term collaboration agreement with BYK to continue collaboration in staff exchanges, product development, training as well as sharing of market intelligence.

CIMB group CEO Tengku Dato’ Sri Zafrul Aziz said: “This has certainly been one of CIMB Group’s best investments. Since our entry in 2009, this investment has yielded an IRR of 17.4% and a money multiple of 3.3 times.

“However, capital requirements for minority investments in other banks such as this has continued to increase, so much so that in time, the returns threshold required to justify this investment will be too high.”

The disposal aligns with CIMB’s T18 operating and capital targets, and its strategy to focus on core business in its core markets, Aziz added. 

The deal is slated to close in 2017, subject to regulatory approvals including that of the Chinese Banking Regulatory Commission.