Affin deal progressing, Bank Muamalat acquisition to complete by month-end
3 posters
Page 1 of 1
Affin deal progressing, Bank Muamalat acquisition to complete by month-end
ETALING JAYA: Affin Holdings Bhd's proposed acquisition of Bank Muamalat Malaysia Bhd is still progressing, with the former now awaiting response from DRB-Hicom Bhd, the major shareholder of Bank Muamalat.
According to analysts who attended a recent briefing by Affin, the banking group has already submitted its final proposal on the proposed acquisition, and is hoping to conclude its decision on the possible deal by the end of the month.
“Management (of Affin) does not foresee the need to extend the deadline further,” Alliance Research analyst Cheah King Yoong revealed in his report.
Bank Muamalat is jointly owned by diversified conglomerate DRB-Hicom, with a 70% stake, and national investment arm Khazanah Nasional Bhd, with a 30% stake.
To recap, Affin had in August last year said that it had obtained Bank Negara's approval to commence negotiations with DRB-Hicom and Khazanah for a possible acquisition of a 30% stake in Bank Muamalat. The negotiation was initially slated for completion by the end of December last year, until it was postponed to March 31 this year.
CIMB Research analyst Winson Ng said in his report that the deal, if successful, would enlarge Affin's branch network and give it the scale to compete with its larger peers.
“The plan is in line with Affin's aspirations to be one of the largest Islamic banking players, not only in Malaysia but also in the region. However, overlaps in operations would be unavoidable. Excluding any synergies, we estimate that the deal could be neutral for Affin's EPS (earnings per share),” he wrote.
Ng also noted that mergers and acquisitions (M&As) were still high on Affin's agenda to support its future growth.
However, he said, Affin was now less keen to purchase Bank Ina Perdana in Indonesia due to the 40% shareholding cap imposed by the Indonesian central bank.
“The cap would limit its control and restrict its plans to transform Bank Ina Perdana, making the deal less attractive, even though it would enable Affin to enter the fast-growing financial market in Indonesia,” he said.
Ng pointed out that it was encouraging to note that despite being one of the smallest banks in Malaysia, Affin was not discouraged from looking at M&As to strengthen its exposure to selected market segments.
“Furthermore, it is setting sights on overseas markets to expand its Islamic banking business. We think that Affin should put more priority on overseas M&As, especially in emerging markets like Indonesia and China, which would provide better growth prospects in the longer term and would not result in overlaps in operations, unlike domestic acquisitions,” he said.
According to analysts who attended a recent briefing by Affin, the banking group has already submitted its final proposal on the proposed acquisition, and is hoping to conclude its decision on the possible deal by the end of the month.
“Management (of Affin) does not foresee the need to extend the deadline further,” Alliance Research analyst Cheah King Yoong revealed in his report.
Bank Muamalat is jointly owned by diversified conglomerate DRB-Hicom, with a 70% stake, and national investment arm Khazanah Nasional Bhd, with a 30% stake.
To recap, Affin had in August last year said that it had obtained Bank Negara's approval to commence negotiations with DRB-Hicom and Khazanah for a possible acquisition of a 30% stake in Bank Muamalat. The negotiation was initially slated for completion by the end of December last year, until it was postponed to March 31 this year.
CIMB Research analyst Winson Ng said in his report that the deal, if successful, would enlarge Affin's branch network and give it the scale to compete with its larger peers.
“The plan is in line with Affin's aspirations to be one of the largest Islamic banking players, not only in Malaysia but also in the region. However, overlaps in operations would be unavoidable. Excluding any synergies, we estimate that the deal could be neutral for Affin's EPS (earnings per share),” he wrote.
Ng also noted that mergers and acquisitions (M&As) were still high on Affin's agenda to support its future growth.
However, he said, Affin was now less keen to purchase Bank Ina Perdana in Indonesia due to the 40% shareholding cap imposed by the Indonesian central bank.
“The cap would limit its control and restrict its plans to transform Bank Ina Perdana, making the deal less attractive, even though it would enable Affin to enter the fast-growing financial market in Indonesia,” he said.
Ng pointed out that it was encouraging to note that despite being one of the smallest banks in Malaysia, Affin was not discouraged from looking at M&As to strengthen its exposure to selected market segments.
“Furthermore, it is setting sights on overseas markets to expand its Islamic banking business. We think that Affin should put more priority on overseas M&As, especially in emerging markets like Indonesia and China, which would provide better growth prospects in the longer term and would not result in overlaps in operations, unlike domestic acquisitions,” he said.
JF- Senior Member
- Posts : 2785 Credits : 3269 Reputation : 163
Join date : 2011-10-07
Job/Hobbies : $$
$$
Re: Affin deal progressing, Bank Muamalat acquisition to complete by month-end
it might be a breather for the downtrending affin stock .. lets take a look
Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it Iâ€d have been right perhaps as often as seven out of ten times.â€
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis
Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it Iâ€d have been right perhaps as often as seven out of ten times.â€
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis
Re: Affin deal progressing, Bank Muamalat acquisition to complete by month-end
Cals wrote:it might be a breather for the downtrending affin stock .. lets take a look
that cj end this month as well
JF- Senior Member
- Posts : 2785 Credits : 3269 Reputation : 163
Join date : 2011-10-07
Job/Hobbies : $$
$$
Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it Iâ€d have been right perhaps as often as seven out of ten times.â€
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis
Re: Affin deal progressing, Bank Muamalat acquisition to complete by month-end
Cals wrote:hurm.. u have?
ya,. hav it at high price didnt cut loss
JF- Senior Member
- Posts : 2785 Credits : 3269 Reputation : 163
Join date : 2011-10-07
Job/Hobbies : $$
$$
Re: Affin deal progressing, Bank Muamalat acquisition to complete by month-end
jommm kita sama watch this counter Mak & anak2
peanut- Senior Member
- Posts : 3508 Credits : 3762 Reputation : 149
Join date : 2012-04-06
Re: Affin deal progressing, Bank Muamalat acquisition to complete by month-end
peanut wrote:jommm kita sama watch this counter Mak & anak2
but this share alwys no volume ~
DRB lai liowwww
JF- Senior Member
- Posts : 2785 Credits : 3269 Reputation : 163
Join date : 2011-10-07
Job/Hobbies : $$
$$
Similar topics
» Shareholders approve Bank Islam acquisition, to complete deal by Dec
» Muamalat (1619) deal to strengthen Affin's (5185) presence
» Highlight MBSB-Bank Muamalat merger raises ‘asset quality’ concerns - Affin Hwang
» Affin Holdings inks deal to buy HwangDBS Investment Bank
» Bank Muamalat inks mou with Bank of Shi Zui Shan to develop Islamic banking (1619)
» Muamalat (1619) deal to strengthen Affin's (5185) presence
» Highlight MBSB-Bank Muamalat merger raises ‘asset quality’ concerns - Affin Hwang
» Affin Holdings inks deal to buy HwangDBS Investment Bank
» Bank Muamalat inks mou with Bank of Shi Zui Shan to develop Islamic banking (1619)
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
|
|