Thursday, 9 October 2014

Latest on the Mega Merger

CIMB and RHBCap shares are valued at RM7.27 and RM10.03 respectively, in merger deal.

CIMB valued at 1.7 times price-to-book and RHBCap at 1.44 times in merger deal.

CIMB Islamic, RHB Islamic and MBSB will merge to form a mega-Islamic Bank, at RM2.82 per MBSB share.

CIMB shareholders will own 70% of the merged CIMB-RHB Group and RHBCap shareholders the remaining 30%.

Bursa likely to reject exemption for EPF to vote on banks merger

Bank merger plan can still proceed even if EPF is not allowed to vote

"Sources say the minority shareholders of RHB Capital have to decide what to do, because if the merger does not proceed, the stock could come under selling pressure.

The merger proposal values RHB Capital at RM10.03 a share, although there is no cash involved as the transaction is a share swap between RHB Capital and CIMB Group.

If Bursa does not allow EPF to vote, the chances of  it (merger) failing is higher and this may result in CIMB’s stock going up as the market has perceived this deal to be negative for them. Alternatively, RHB and MBSB may see their stock price coming off."

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