RHB Capital seeking to create Malaysia's 2nd-largest banking group - report |
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Mon, 22 Oct 2007 01:50
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KUALA LUMPUR (Thomson Financial) - RHB Capital Bhd is seeking to merge with AmBank Group to create Malaysia's second-largest banking group, with assets of more than 181 billion ringgit, the Edge Weekly reported over the weekend.RHB Capital runs RHB Bank, Malaysia's fourth-largest commercial bank. AmBank is the country's fifth-largest commercial bank and is a unit of AMMB Holdings Bhd.The newspaper quoted unidentified sources as saying that although merger negotiations have yet to begin, the groundwork is already being laid.The banking groups must get central bank approval before beginning negotiations, and this could happen as soon as next week, the newspaper said.RHB Capital is strong in commercial banking while AmBank's forte is investment banking and hire-purchase finance.The Employees Provident Fund (EPF), a Malaysian pension fund, owns 82 percent of RHB Capital and 9.6 percent of AMMB.'The merger cannot be on a one-for-one share swap basis. But certainly, EPF will have the biggest stake in the merged entity, should the deal go through,' the paper quoted an unidentified banker as saying.In May, Australia & New Zealand Banking Group acquired 14.08 percent of AmBank and willeventually own up to 25 percent through an equity participation arrangement.(1 US dollar = 3.36 ringgit)munfoo.hong@thomson.commfh/jm/msCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Malaysia's RHB to unveil organisational revamp - report 