CIMB still in talks with San Miguel over BoC deal

KUALA LUMPUR: CIMB Group Holdings is still in talks with San Miguel Corp on its plans to acquire a controlling stake in the Philippines' Bank of Commerce (BoC), chief executive Datuk Seri Nazir Razak said yesterday.

He said he could not share any updates as the discussion is still ongoing.

"We both could either walk away or conclude the deal," he said when asked by reporters on the direction of the US$297 million (RM938.52 million) deal.

Earlier last week, San Miguel president Ramon Ang told the media in the Philippines that both parties have reached a deal and it would be concluded in 30 days.

Nazir, however, dismissed the report saying he was not aware of the development, and stressed that both parties were still in discussion.

Nazir was speaking at a press conference during the CIMB Annual Asia Pacific Conference 2013 here yesterday.

Asked about his concern over the likelihood of the outflow of funds from the Asian market and the possible impact on CIMB's operations, he said:

"What is most important to CIMB is the general health of the Ase- an economies.

"Our performance and position largely depends on the overall well-being of these economies and not the specific movement in capital market or interest rate, etc."

He said if one looks at the "risk-off" trade and the rising interest rate in the US, there will be a major reversal of hot money out of emerging markets and Asia.

"Not so long ago, we were at record level in terms of foreign ownership of Indonesian and Malaysian government bonds," he noted.

Asked how the delay in the realisation of the Asean Economic Community (AEC) by 2015 will impact CIMB as a regional player, he said whether the AEC is achieved or not by then is not important.

"Whether it arrives in the full monty or not is not critical. If it does, it will be better, of course, but if not, we have already factored that in because it is rather ambitious."

Nazir said since the launch of the AEC charter in 2007, Asean has achieved phenomenal achievement and should AEC not materialise by 2015, it should not be seen as a failure.

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