CIMB Group Holdings Bhd and Malayan Banking Bhd (Maybank), undeniably Malaysia's two biggest banks is competing rigorously to take over RHB Capital which is widely believed to be the fourth biggest lender in Malaysia. If indeed CIMB is successful (they are indeed considered as the front runners) in their bid, the bank led by the PM's younger brother (Nazir Razak), would eventually become the biggest bank in not only Malaysia, but also South East Asia, If that happens, it will seems that CIMB would have completed a remarkable turn around. .It is understood that both these banks (CIMB and Maybank) have obtained Bank Negara approval (individually or separately that is) to begin competing merger talks with RHB Capital.
According to The Malaysian Insider report, analysts have said the RHB Capital takeover could be based on a price to book value of 2 to 2 5 times which will work out to between RM9 70 and RM12 per share Based on RHB’s share base of 2 2 billion shares any investor buying EPF’s entire stake would have to pay up to RM26 3 billion. Having mentioned that, what makes it more controversial and shrouded with mystery is new and unusual conditions imposed by Bank Negara Malaysia (BNM) in the sale of the RM5 9 billion sale of a 25 per cent stake in RHB Capital Bhd to another interested overseas party albeit the two Abu Dhabi sister firms.
BNM's bizarre requirements for Abu Dhabi Commercial Bank ADCB and new RHB shareholder Abu Dhabi investment fund Aabar Investments to adjust the sale price if the merger price is lower than the RM10 80 per share price agreed by both companies and the merger must not deviate too far from the market price so as to weaken the merged entity. Some bankers were puzzled by the aggressive and unusual intervention by BNM when it was reported in a few postings that after the deal was signed on Friday, BNM wanted ADCB to state the conditions imposed by them in their press releases. which some bankers say is an for such a matter.The stand taken by BNM remains elusive, when Zeti refuse to comment anything on the matter, commenting that it is a private bank matter.
happy father's......and ciao.....a.h.baharom
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