OSK Investment Bank says announcements on proposed merger with RHB only after Bank Negara green light

PETALING JAYA: OSK Investment Bank Bhd is keeping mum on details of the proposed merger with RHB Banking Group, saying only that it is still awaiting approval from Bank Negara to start discussions.

“When the approval is in hand, we can make further announcements,” OSK Investment Bank CEO and executive director U Chen Hock said.

He declined to comment on when Bank Negara was likely to provide the green light for discussions to commence.

“I wouldn't want to put pressure on the central bank,” he said.

U, speaking after the launch of virtual investing competition OSK Investment Challenge 2011 organised by OSK Investment Bank, also did not reveal who was advising it for the proposed deal.

The OSK group, founded by veteran broker Ong Leong Huat, is the fourth largest retail broker in the country (with a 6.7% market share), RHB Capital is the third largest, making the merged entity the top stockbroker in Malaysia if the merger goes through.

At present, investment banking contributes about 50% to OSK Holdings group's earnings compared with slightly less than 30% from stockbroking, according to research reports.

After combining OSK's market share with RHB Cap's 7%, the merged entity would overtake CIMB Securities, which is currently leading with a market share of 10.5%, in the stockbroking industry.

Meanwhile, Bursa Malaysia chief executive officer Datuk Tajuddin Atan cautioned investors to research thoroughly companies before investing in them.

“Risk is something we can manage if our decisions are supported by an understanding of the business in which we put our money into,” he said in his speech.

On a separate matter, he said Bursa Malaysia had yet to identify who held the 23.6% block of shares in Bandar Raya Development Bhd (BRDB).

“We've made some enquiries,” he said.

BRDB was reportedly asked earlier by Bursa Malaysia to clarify to its shareholders issues that had been raised in the media regarding the company's proposal to hive off key assets to its major shareholder.

The OSK Investment Challenge 2011 meanwhile is open to Malaysian students at local institutions of higher learning.

Participants will be given virtual money worth RM100,000 to trade based on actual real-time stock price.

li ba sa cap sa

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sun wrote:li ba sa cap sa

ng pat ...