Ambank's share price plummets after RM2.83b settlement over 1MDB scandal

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Ambank's share price plummets after RM2.83b settlement over 1MDB scandal
Ambank's share price plummets after RM2.83b settlement over 1MDB scandal

Editor's note: An earlier copy of this article reported that the RM2.83 billion was a fine, instead of a settlement. This has been corrected.

The share price of AMMB Holdings Bhd (Ambank), which paid an RM2.83 billion settlement to the government for its role in the 1MDB scandal, plunged by as much as 16.1 percent after the market opened today.

The Finance Ministry announced the settlement last Friday after markets closed.

Ambank had also requested a two-day trading suspension of its shares on Monday and Tuesday.

At the time of writing, Ambank's share price stood at RM2.81, a decline of 11.08 percent.

Ambank had as its client then prime minister Najib Abdul Razak, who between 2011 and 2013 received billions of ringgit in transactions into accounts with the bank.

The majority of the money was later traced by investigators to 1MDB and its subsidiaries.

Ambank's largest shareholder, Australia and New Zealand Banking Group Limited (ANZ Group), with a 23.8 percent stake, also took a hit.

ANZ Group on Monday announced that it would write down the value of its investments following the massive settlement on Ambank.

It slashed the carrying value of its shares in Ambank by 24 percent , which impacted the group's earnings.

Najib was in July last year found guilty on seven counts of abuse of power, criminal breach of trust and money laundering involving RM42 million in funds traced to SRC International Bhd, a former 1MDB subsidiary.

The High Court in Kuala Lumpur then sentenced Najib to 12 years in prison and a fine of RM210 million. He is appealing the court's decision.

He is also facing another 25 charges of money laundering and abuse of power in relation to RM2.28 billion in funds he allegedly received that could be traced to 1MDB.