The merger with RHBCap would provide Maybank with economies of scale and talent that the bank needs to compete with global players, says Maybank's chairman
Read more: Maybank proposal by end of this month http://www.btimes.com.my/articles/13SCALE/Article/#ixzz1PtQPAgXr
Kuala Lumpur: Malayan Banking Bhd (Maybank) will make a proposal to merge with RHB Capital Bhd (RHBCap) before the end of this month, chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said. The board is now deliberating details of the proposal, he said, adding that the deal will help improve the group's earnings. "When we make the final proposal to the shareholders of RHB, it will be the best proposal we can make," he told a news conference after the bank's shareholders meeting yesterday. Maybank, the country's largest banking group, and second largest lender CIMB Group Holdings Bhd are competing to buy RHBCap, the fifth largest banking group with a market value of about RM20.2 billion. Zaharuddin said the merger with RHBCap would provide Maybank with economies of scale and talent that the bank needs to compete with global players. He said RHBCap has many services, which would contribute significantly to Maybank in the competitive regional banking industry. "They (RHBCap) have licence in Thailand, branches in Singapore, (and) they have talents and systems that maybe of interest to us," Zaharuddin added. Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar said the merger would involve a share swap. He also repeated that Maybank will be very disciplined in its approach, just like it paid a fair value for Singapore brokerage Kim Eng Holdings Ltd. Last week, OSK Investment Research has set RM10.80 as a realistic pricing cap for the acquisition, which is a 9 per cent premium to RHBCap's current share price. Abdul Wahid said Maybank will only continue with the transaction if it creates value for its shareholders and adds to earnings. Maybank is also in talks with all major shareholders, including the Employees Provident Fund and Abu Dhabi Commercial Bank (ADCB). The EPF has a 44.7 per cent stake in RHBCap, while ADCB owns 25 per cent.
Read more: Maybank proposal by end of this month http://www.btimes.com.my/articles/13SCALE/Article/#ixzz1PtQPAgXr
Kuala Lumpur: Malayan Banking Bhd (Maybank) will make a proposal to merge with RHB Capital Bhd (RHBCap) before the end of this month, chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said. The board is now deliberating details of the proposal, he said, adding that the deal will help improve the group's earnings. "When we make the final proposal to the shareholders of RHB, it will be the best proposal we can make," he told a news conference after the bank's shareholders meeting yesterday. Maybank, the country's largest banking group, and second largest lender CIMB Group Holdings Bhd are competing to buy RHBCap, the fifth largest banking group with a market value of about RM20.2 billion. Zaharuddin said the merger with RHBCap would provide Maybank with economies of scale and talent that the bank needs to compete with global players. He said RHBCap has many services, which would contribute significantly to Maybank in the competitive regional banking industry. "They (RHBCap) have licence in Thailand, branches in Singapore, (and) they have talents and systems that maybe of interest to us," Zaharuddin added. Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar said the merger would involve a share swap. He also repeated that Maybank will be very disciplined in its approach, just like it paid a fair value for Singapore brokerage Kim Eng Holdings Ltd. Last week, OSK Investment Research has set RM10.80 as a realistic pricing cap for the acquisition, which is a 9 per cent premium to RHBCap's current share price. Abdul Wahid said Maybank will only continue with the transaction if it creates value for its shareholders and adds to earnings. Maybank is also in talks with all major shareholders, including the Employees Provident Fund and Abu Dhabi Commercial Bank (ADCB). The EPF has a 44.7 per cent stake in RHBCap, while ADCB owns 25 per cent.
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