Nazir: CIMB seeks value creating merger with RHB Cap

KUALA LUMPUR: CIMB Group is not looking at buying RHB Capital Bhd but the possibility of a value creating merger with the latter, said Group Chief Executive Datuk Seri Nazir Razak.

"We are not interested in ADCB (Abu Dhabi Commercial Bank)'s 25 per cent stake. We are in discussion with RHB as to whether such a merger can happen. CIMB is looking to negotiate a value creating merger. To the best of my knowledge, RHB is not for sale.

"Out of the process, there can be, as far as my knowledge three outcomes - to proceed with the CIMB merger; to proceed with a merger of a bank with yellow colour (MALAYAN BANKING BHD []); and the RHB stand alone.

"As far as I'm concerned, there is a one third chance of each of those possible outcome as we stand today because we are still at a relatively early stage," he said on Monday, June 20 (today after presenting RM200,000 to the Federation of Chinese Association Malaysia (Huazong) in support of their bid to raise funds for a new premise.

Last Friday, ADCB signed an agreement to sell its 25 per cent stake in RHB Capital to Aabar Investments, an Abu Dhabi investment fund, for RM10.80 per share.

Commenting on the transaction, Nazir said: I think the most relevant part of that transaction, is that, we now have the identity of the 25 per cent shareholder.

"So, the new shareholder comes into equation. We are now able to engage this new party because it has become a very material stakeholder. There's no point negotiating a deal unless you can get support of the shareholders.

"I urge you to take one step further in thinking about this transaction. So, the price is not relevant. What everyone is looking at is a value creating merger," he said.

Nazir said a proposal on the merger is expected to be submitted by end of next month. - Bernama