Showing posts with label RHB. Show all posts
“Malaysia needs a mega Islamic bank to internationalise Islamic Finance. But, we do not want a mega bank for the sake of having one."
KUALA LUMPUR, Sept 2 — Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz says the creation of a mega Islamic bank should serve the objective of supporting international trade and cross-border investment activities.
“Malaysia needs a mega Islamic bank to internationalise Islamic Finance. But, we do not want a mega bank for the sake of having one.
“That is why we would like (to have) a mega bank which has the scale and ability to do that,” she told reporters after officiating the Global Islamic Finance Forum (GIFF) 2014 here today. Zeti said large institutions, through the mega bank, would expand the national economy via internationalisation, as well as, enhance financial and economic connectivity with other countries.
She was commenting on the license for the proposed mega Islamic bank by CIMB Group, RHB Capital Bhd and Malaysia Building Society Bhd (MBSB). - See more at:Malaysia Insider
Mega Islamic bank’s creation should meet objective, says Zeti
“Malaysia needs a mega Islamic bank to internationalise Islamic Finance. But, we do not want a mega bank for the sake of having one.
“That is why we would like (to have) a mega bank which has the scale and ability to do that,” she told reporters after officiating the Global Islamic Finance Forum (GIFF) 2014 here today. Zeti said large institutions, through the mega bank, would expand the national economy via internationalisation, as well as, enhance financial and economic connectivity with other countries.
She was commenting on the license for the proposed mega Islamic bank by CIMB Group, RHB Capital Bhd and Malaysia Building Society Bhd (MBSB). - See more at:Malaysia InsiderMega Islamic bank’s creation should meet objective, says Zeti
Maybank offers one of the highest dividend yields
PETALING JAYA: Malayan Bank Bhd and RHB Capital Bhd, which are Credit Suisse's top picks, have piqued the interest of foreign investors.
Maybank climbed 13 sen to RM9.26 with close to 20 million shares traded while RHB Capital rose 18 sen to RM8.38 with a trading volume of 3.2 million shares.
Another of its top pick was Alliance Financial Group Bhd, which, however, went down 2 sen to RM4.28. In a recent report, the foreign research house said it favoured banks that had sufficient capital or a plan in place to address capital deficit that did not imply any near-term cash call risk and were perceived by investors to be politically neutral.
“We believe that these three stocks have defensive qualities that would enable them to better withstand any potential selling pressure in the run-up to the general elections,” it added.
It said RHB traded at a price-to-earnings (P/E) discount of more than 30% to industry peers (2013: P/E of 9.7 times) and had one of the lowest foreign ownership of 8%.
Meanwhile, Maybank had the lowest foreign ownership among the large banks and offered one of the highest net dividend yields in the market of 6% to 7%, it noted.
Alliance, which was deemed as a takeover target for Singapore-based DBS Group Holdings Ltd, traded at attractive valuations (2013: P/E of 11 times) and offered a 4% net dividend yield. It also pointed out that only Maybank and Alliance had sufficient capital to comply with new regulatory limits.
“Malaysia is the worst performing market over the past six months despite street earnings estimate momentum being positive (2013 estimates increases 3% over the past six months), due mainly to concerns over political risk in the run-up to upcoming general elections,” it said.
It also noted that Malaysian banks' P/E premium to regional peers had diminished to 24% compared with a 39% premium six months earlier and 34% premium three months ago. Besides political risks, another concern that could cap share price performance was the ability of banks to meet the stricter capital requirements to be imposed by Bank Negara, it added - The Star Biz
Maybank climbed 13 sen to RM9.26 with close to 20 million shares traded while RHB Capital rose 18 sen to RM8.38 with a trading volume of 3.2 million shares.
Another of its top pick was Alliance Financial Group Bhd, which, however, went down 2 sen to RM4.28. In a recent report, the foreign research house said it favoured banks that had sufficient capital or a plan in place to address capital deficit that did not imply any near-term cash call risk and were perceived by investors to be politically neutral.
“We believe that these three stocks have defensive qualities that would enable them to better withstand any potential selling pressure in the run-up to the general elections,” it added.
It said RHB traded at a price-to-earnings (P/E) discount of more than 30% to industry peers (2013: P/E of 9.7 times) and had one of the lowest foreign ownership of 8%.
Meanwhile, Maybank had the lowest foreign ownership among the large banks and offered one of the highest net dividend yields in the market of 6% to 7%, it noted.
Alliance, which was deemed as a takeover target for Singapore-based DBS Group Holdings Ltd, traded at attractive valuations (2013: P/E of 11 times) and offered a 4% net dividend yield. It also pointed out that only Maybank and Alliance had sufficient capital to comply with new regulatory limits.
“Malaysia is the worst performing market over the past six months despite street earnings estimate momentum being positive (2013 estimates increases 3% over the past six months), due mainly to concerns over political risk in the run-up to upcoming general elections,” it said.
It also noted that Malaysian banks' P/E premium to regional peers had diminished to 24% compared with a 39% premium six months earlier and 34% premium three months ago. Besides political risks, another concern that could cap share price performance was the ability of banks to meet the stricter capital requirements to be imposed by Bank Negara, it added - The Star Biz
RHB plans to be a wholesome bank
Click to view graphic
TWO words: My bank. That's how Tan Sri Azlan Zainol would like RHB Bank Bhd the organisation in which he has been the chairman for the past seven years to be seen by its customers.
Indeed, it is every banker's dream to be the first choice of service providers for customers.
It's not surprising therefore that Azlan is thinking of positioning RHB Bank as such.
“When people look for banks, RHB should be the first choice that comes into their minds,” Azlan tells StarBizWeek in an interview in conjunction with the bank's 100-year anniversary this year.
“The key for us (to achieve that) is to find a niche,” he says, pointing to “Easy by RHB” as one of the most important initiatives that the bank has launched in recent years towards this end.
RHB Bank is one of the key subsidiaries of Main Market-listed RHB Capital Bhd (RHB Cap). It contributes about 80% of the group's pre-tax profit annually.
The banking group will reach a significant milestone come July this year, when RHB Bank is officially 100 years old.
“I presume that we are the oldest bank in Malaysia,” Azlan says, noting that there are not many companies in the country that have reached this milestone.
“We're proud of the fact that we're 100 years old, and that we've done well throughout all these years,” he says.
Lots of programmes are in store, according to Azlan, for the banking group's customers, stakeholders and staff, as it will celebrate in a “reasonably big way”. The organisation, he says, will also focus a little more on charity as part of its celebration.
Rich history
The RHB Banking group boasts a rich history that traces the development of the country's banking and financial services industry from pre-independence days to the most turbulent economic times in the region's history.
Its important celebration this year is also taking place amid the changing landscape of the industry that has already seen a spate of mergers and acquisitions (M&As) in the past couple of years, both at home and in the region.
Click to view graphic
The RHB Banking group, which assumed its current name only in 1997, is itself no stranger to M&As.
It came about through a merger between Kwong Yik Bank Bhd and DCB Bank Bhd (formerly known as the Development and Commercial Bank Bhd) in 1997. That year saw bumiputra entrepreneur Tan Sri Abdul Rashid Hussain emerge as the group's executive chairman. The bank's current initials come from his name.
Kwong Yik Bank was founded by a Chinese community led by Wong Loke Yew, or better known as Loke Yew in July 1913, while DCB Bank was established in 1966 by then finance minister Tun Sir Henry H.S. Lee.
In the aftermath of the 1997/98 Asian financial crisis, the troubled Sime Bank Bhd (formerly known as UMBC Bank) was merged into the RHB Banking group in 1999.
Four years later, when Kuching-based Bank Utama Bhd, the banking arm of Cahya Mata Sarawak Bhd, became the latest bank to be merged into the RHB Banking group, Rashid made his exit from the group.
Today, the controlling shareholder of the RHB Banking group is the Employees Provident Fund (EPF), which owns a 41% stake in RHB Cap.
(Azlan is also the CEO of EPF at present and holds directorship in RHB Cap.)
“As a major shareholder in the RHB Banking group, we (EPF) will continue to make sure that the group grows in a healthy way,” he stresses.
Going international
According to Azlan, the immediate challenge for the group is to try and grow its business outside Malaysia.
“We are still hopeful of the deal with PT Bank Mestika Dharma (Bank Mestika) in Indonesia as part of our plan to grow our presence outside Malaysia,” he says.
RHB Banking group's initial plan was to acquire an 80% stake in Bank Mestika for RM1.16bil. But recent regulatory changes in Indonesia, which put a limit on foreign shareholding, means the group cannot own more than a 40% stake in Bank Mestika.
“We will play by the rules. If the rules now say foreign ownership would be limited to 40%, we will take the 40%,” Azlan says.
In November last year, RHB Bank and Bank Mestika had mutually extended the period for the completion of the conditional sale and purchase agreement to Jan 31, 2013.
According to Azlan, the RHB Banking group will still be able to drive the operations of Bank Mestika with its local partner once it completes the proposed acquisition in the latter, which could be by June this year.
The immediate priority in Indonesia upon completion of the deal is to increase RHB group's network and presence in Sumatra, and all the other key economic areas that the Indonesian government intends to develop.
According to media reports, the Indonesian government has identified at least five special economic zones to boost growth. These include Mandalika in central Lombok, West Nusa Tenggara, and Bitung in North Sulawesi; Sei Mangke in Simalungun, North Sumatra; and Tanjung Lesung in Pandeglang, Banten.
On its regional expansion plans, Azlan further says: “We want to concentrate on South-East Asia first, and then, South China.”
The group already has an office in Hong Kong and China, and is looking at expanding further in the Indochina region, encompassing Vietnam and Laos. The group is also eyeing possible opportunities in the Philippines and Myanmar.
“Our target is to grow our overseas contributions from the current 5% of total revenue to 30% of total revenue by 2017,” Azlan says.
He says the recent acquisition of OSK Investment Bank (OSKIB) has boosted the group's presence outside Malaysia.
“There are plenty of synergies gained from the exercise. A boost to our overseas presence is one. The “people factor” is another this is a merger of talented people,” he says, adding that the focus is to ensure that the group's growth could be accelerated from now on.
Investment banking currently contributes only about 3% of RHB Cap's group pre-tax profit.
“We expect to see huge growth for the group now because OSKIB is in,” Azlan points out.
RHB Cap raked in a net profit of RM1.4bil, or 62.1 sen per share, for the first nine months of 2012. This represented an increase of 8.8% from the corresponding period a year ago.
The group's revenue for the period in review, on the other hand, rose 7.6% year-on-year to RM3.5bil. Pre-tax profit for that period in 2012 stood at RM1.8bil, of which RM1.7bil came from RHB Bank.
Annualised return on equity (ROE) and return on assets stood at 14% and 1.1%, respectively.
“I think we can improve our profitability I don't see why our ROE cannot go to 20% within a short period of time,” Azlan says.
The RHB Banking group has already outlined several strategies to grow its business and improve its bottom line.
According to Azlan, these strategies include boosting loan growth to enhance interest income, expanding the group's transaction banking and treasury businesses as well as enhancing other areas that could boost its fee income.
But to Azlan, what's most important is not just about keeping the business growing and making profits.
“I want to build a wholesome bank it is not just about profits and making money, but it is also about our responsibility to society, our duty to develop talent within the management of RHB group, and making our customers happy,” he explains of his longer-term vision for RHB Banking group.
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Malaysia Corporate News,
RHB
Upside seen for RHB Cap
ALLIANCE Research was one of the first to flag RHB Capital Bhd (RHB Cap) as its top pick for the domestic banking sector last year despite uncertainties around the group's merger with OSK Investment Bank (OSKIB).
Citing several catalysts, including the completion of the acquisition, the research house's banking analyst Cheah King Yoong said at the time that RHB Cap's low valuations were “no longer justified” and it was poised to go from a “market laggard to a market leader, with its shares outperforming many of its banking peers”.
With the merger now signed and sealed, Cheah says he still holds this view.
“We believe investors have been overly conservative on the potential synergistic benefits to be derived from RHB Cap's acquisition of OSKIB,” he explains to StarBizWeek.
Indeed, if there is one thing that stands out in discussions about the company, it is that RHB Cap is one of the cheapest banking stocks around.
But this, depending on whether you see the glass as half full or half empty, could either mean it is trading at attractive valuations or that the market is discounting it for a good reason.
RHB Cap is currently valued at a price-to-book of 1.2 times and price-to-earnings of 9.8 times for its financial year 2013. In comparison, Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd command a price-to-book of 1.8 times and 1.9 times and price-to-earnings of 12.5 times and 11.9 times, respectively.
Among the second-tier banks, Hong Leong Bank trades at a forward price-to-book of 2.1 times and price-to-earnings of 14.4 times, and Public Bank at 2.9 times and 13.4 times, according to Bloomberg data.
Analysts say RHB Cap shares have underperformed despite solid earnings report cards so far in the first three quarters of its financial year ended Dec 31, 2012.
Its nine-month results had exceeded expectations, with net profit rising 14.4% to RM487.48mil from RM426.22mil in the previous year, accounting for 81.4% of full-year estimates. Revenue was up 10.6% to RM1.96bil from RM1.77bil.
This was on the back of higher net interest income and lower loan loss provisions. Its gross loans grew at a impressive pace of 12.6%, on an annualised basis, to RM106.6bil, beating the industry average of 11.2%, while deposits expanded 11.3% to RM125.7bil.
Its loan-to-deposit ratio ticked up to 84.8% at end-September.
The firm's annualised return on equity stood at 15%, although this may undershoot management's 14% target for 2012 by a small margin because of the enlarged share base.
RHB Cap shares gained 5.2% last year, while Maybank saw its stock rise 10.3%, CIMB 5.4%, Hong Leong 37.4%, and Public Bank 23.7%.
The sceptics opine that the merger with OSKIB was skewed in favour of the latter's shareholders, a move that will dilute earnings and water down its return on equity for at least the next few quarters.
RHB Cap had in November issued 245 million new shares, or 10% of its enlarged share base, at RM7.36 each, which formed the bulk of its settlement with OSK Holdings Bhd. The cash portion was RM147.5mil, giving the entire purchase a price tag of RM1.95bil. OSK Holdings will remain a listed entity.
The acquisition valued OSKIB at 1.77 times price-to-book and 18.9 times historical price-to-earnings, and saw OSK Holdings emerge as RHB Cap's third-largest shareholder behind Abu Dhabi's Aabar Investments PJSC and the Employees Provident Fund (EPF).
OSK Holdings will also get a board seat each on RHB Cap, RHB Bank and RHB Investment Bank.
In addition, Maybank IB Research thinks RHB Cap shares could be reflecting a potential merger with Malaysia Building Society Bhd (MBSB). “This possibility cannot be ruled out,” it notes in a report.
StarBiz had previously reported that MBSB could be privatised and merged with RHB Bank as both are majority-owned by the EPF.
To Alliance's Cheah, the negativity around RHB Cap can only mean there is plenty of upside.
He also deems the anticipated acquisition of a stake in Indonesia's PT Bank Mestika Dharma would be a strategic move for the group to entrench its position in the lucrative Indonesian market.
“Although the market is concerned that RHB Cap may overpay for Bank Mestika, we believe it will be priced reasonably,” he says, pointing out that the unlisted Bank Mestika's product range is currently underutilised.
RHB Cap had originally proposed to buy 80% of Bank Mestika in 2009 for RM1.16bil, but regulatory changes by Indonesia's central bank to limit foreign ownership to 40% had delayed its plans.
RHB Bank and Bank Mestika now have until Jan 31 to ink the conditional sale and purchase agreement.
“RHB Cap remains committed to securing a presence in Indonesia and is willing to take the first 40% stake pending further discussions with regulators,” HwangDBS Vickers Research explains in a client note recently.
Maybank IB Research also points out that the halving of its purchase effectively shrinks any rights issue that could be carried out to fund it.
Meanwhile, it is up in the air as to whether RHB Cap will benefit from any merger and acquisition (M&A) play this year. In 2011 it was pursued by both Maybank and CIMB, a deal that was scuppered when Aabar Investments paid RM10.80 per share or 2.25 times book value for a 25% block in RHB Cap from its sister company Abu Dhabi Commercial Bank.
Still, a market watcher contends that Aabar Investments could yet pare down its shares if market talk is to be believed.
Of more immediate focus is how the consolidation between RHB Cap and OSK IB will pan out. Already, industry observers say the usual teething problems are making their presence felt while management maintains that attrition has been minimal.
The market will also be waiting to scrutinise the synergies that are to be extracted from the merger, which RHB Cap has quantified at RM324mil over the next three years, most of which is expected to be recognised in the third year.
The opportunities from cross-selling, a stronger IB presence and expanded retail and commercial offerings could wring in some RM275mil, cost savings and network alignment RM34mil and lower cost of credit RM15mil. Integration costs are estimated at RM86mil.
And in light of the slower loan growth forecast this year of between 10%-11% versus 11%-12% in 2012, Alliance's Cheah believes the key near-term earnings driver for RHB Cap will be non-interest income, such as fees from the disbursement of Economic Transformation Programme-related bonds and the continued robust capital markets.
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RHB
OSK to sell investment banking biz to RHB Cap for RM1.97b
Comment: Since OSK plan to remain listed and keep the RHB shares, the minority shareholder will not directly benefit with the deal in short term.
KUALA LUMPUR: OSK Holdings Bhd (OSKH) is disposing of its investment banking business to RHB Capital Bhd for RM1.97bil to be satisfied via new RHB Cap shares and RM174.3mil cash, which would see OSKH getting a 10% equity stake.
KUALA LUMPUR: OSK Holdings Bhd (OSKH) is disposing of its investment banking business to RHB Capital Bhd for RM1.97bil to be satisfied via new RHB Cap shares and RM174.3mil cash, which would see OSKH getting a 10% equity stake.
OSKH said on Monday it would dispose of its 100% stake in OSK Investment Bank Bhd (OSKIB); 20% of OSK Trustees Bhd; 20% of Malaysian Trustees Bhd and 100% stake in OSK Investment Bank (Labuan) Ltd.
The total disposal consideration of RM1.977bil would be satisfied through the issuance of 245.0 million new RHB Cap shares to be issued at an issue price of RM7.36 per RHB Cap shares and cash of RM174.3mil, it said.
"The proposed disposal will enable OSKH to unlock the value of its investment in OSKIB Group, whilst the consideration shares to be received by OSKH will allow OSKH to equity account a prospective 10% stake in RHBC, which is a more liquid investment form compared to OSKIB," it said after entering into a conditional share purchase agreement with RHB Cap.
OSKH said the disposal consideration was based on OSKIB's unaudited consolidated net assets of RM1.102bil as at Sept 30, 2011 or at a price to book ratio valuation of about 1.77 times.
It added the issue price of the new RHB Cap shares of RM7.36 and the number of new RHB Cap shares to be received as part of the disposal consideration would be 10% equity interest in RHB Cap as at Dec 31, 2011.
"The issue price of RM7.36 represents a slight premium of 0.27% to the five-day volume weighted average market price of RHB Cap shares up to and including May 25, 2012 of RM7.34," it said.
OSKH added the cash portion of RM174.3mil would be used to defray the estimated expenses for the proposed disposal, repayment of bank borrowings of OSKH group and to fund OSKH's on-going businesses.
It also said the unaudited net assets of OSK Trustees, Malaysian Trustees and OSKIB Labuan as at June 30, 2011 were about RM5.13mil, RM9.15mil and RM21.61mil respectively. (The Star Biz)
興業19.8億購僑豐投行‧保持上市地位
（吉隆坡28日訊）興業資本（RHBCAP，1066，主板金融組）建議以19億7千750萬令吉，藉現金和發股方式全購僑豐控股（OSK，5053，主板金融組）的投資銀行業務。
僑豐將持興業10%
一旦收購完成，僑豐控股將因持有興業資本的10%股權崛起成為顯著股東，同時將保持上市地位。
根據兩家公司的文告，興業資本將以現金1億7千430萬令吉，再結合2億4千500萬股、每股售價7令吉36仙的新股進行上述收購。售價比興業資本5月25日股價7令吉34仙的5天加權平均價多0.27%。
興業資本收購的公司包括僑豐投資銀行和僑豐投資銀行（納閩）的100%股權，以及僑豐信托和大馬信托的20%股權。該行將透過內部資金和貸款融資收購計劃。
由於上述計劃將導致僑豐控股成為PN17公司，而董事部卻有意保持其上市地位，因此僑豐控股將向大馬股票交易所申請豁免，並繼續以其他持續業務和興業資本持股立足。
僑豐控股估計，脫售以上資產將帶來約8億5千332萬令吉收益，脫售所得1億7千430萬令吉現金主要用作償還貸款並融資業務，而當中的1億5千430萬令吉將充作公司的營運資本。（星洲日報／財經）
RHBCap, OSK may sign share purchase deal in 2 weeks
PETALING JAYA: A conditional share purchase agreement between RHB Capital Bhd and OSK Holdings Bhd could be signed in one to weeks, after the Finance Ministry (MOF) gave its nod for their proposed merger last Friday, CIMB Research said.
“By then, the details of the deal will be disclosed,” it said in a report, adding that the news of MOF's approval was not a surprise “as we did not expect any issues to hinder the deal and the negotiations were progressing smoothly”.
StarBiz reported on Friday that the merger was believed to have received the green light from the central bank and was awaiting a decision from the ministry.
Various obstacles had delayed the merger from its original first-quarter completion target, such as securing the approvals of overseas banking and financial regulators, the need to iron out “political and management” issues, and the search for a “neutral” investment banking head.
An analyst told StarBiz that OSK director and major shareholder Ong Leong Huat was the most likely candidate to head RHB's enlarged investment banking (IB) arm given his years of experience as a stockbroker.
He said it was probable too that OSK's IB team would be picked to run RHB's IB business, following some high-level departures at the latter in recent years.
Ong built OSK into the fourth largest retail broker in the country just behind RHB, and other listed companies in his stable include OSK Property Holdings Bhd and OSK Ventures International Bhd.
Kenanga Research in note dated April 19 cited culture shock as a key impediment holding back the merger. “RHB operates under a conservative approach while OSK IB is more of an entrepreneur-driven IB that is more aggressive and risk-taking.” .
Nonetheless, it said the proposed merger would be beneficial in the medium to long term.
“We believe OSK IB is strategically an ideal fit for RHB and will add significant diversification of clienteles and scale in the capital market and also provide an immediate access for RHB into other Asean markets.”
Meanwhile, Alliance Research analyst Cheah King Yoong believes the mode of settlement for the merger exercise would be via a combination of cash and new shares.
A 100% share offer, he pointed out, could dilute RHB Cap's earnings, which might not allow the acquiring company to fully optimise the synergistic benefits, while an all-cash settlement may not be ideal for management retention and could be negative from a cashflow standpoint.
The merger will make RHB the country's largest stockbroking firm with nearly 15% market share, overtaking current top-seater CIMB Securities, which has a 10.5% share.
It will become the fourth largest financial services group by assets and see its footprint expanded to markets like Indonesia, Cambodia, Hong Kong and China.
OSK has stockbroking operations in Indonesia, Cambodia, Hong Kong, Thailand and China, and RHB has presence in Singapore, Thailand and Brunei.- The Star Biz
Tuesday May 1, 2012
RHB, OSK get ministry nod for merger plan
RHB Capital Bhd (RHBCap) and OSK Holdings Bhd have received the approval from the Ministry of Finance (MoF) for the proposed merger of the businesses of RHB Banking group and OSK Investment Bank Group.
In separate filings to Bursa Malaysia today, RHBCap and OSK said they received the notifications from Bank Negara Malaysia on the approval granted by the ministry.
"The terms and conditions of the proposed merger will be announced subject to the execution of the conditional share purchase agreement for the proposed merger," they said. -- BERNAMA
In separate filings to Bursa Malaysia today, RHBCap and OSK said they received the notifications from Bank Negara Malaysia on the approval granted by the ministry.
"The terms and conditions of the proposed merger will be announced subject to the execution of the conditional share purchase agreement for the proposed merger," they said. -- BERNAMA
RHBCap-OSK merger believed to have received Bank Negara approval
Deal awaits ministry nod
PETALING JAYA: The RHB Capital Bhd-OSK Holdings Bhd merger deal is believed to have received the nod from Bank Negara and is now awaiting approval at the Finance Ministry level, according to sources.
“It will probably take another two to three weeks before an announcement is made,'' an analyst told StarBiz.
While most analysts had expected this nod, some industry players expressed surprise that the issues that were said to have held up the approval process could be resolved so fast.
“The market and industry have to make up their minds,'' said an observer. “One moment, they say the authorities are dragging their feet. The next moment, they question why was the process so fast.''
Among the issues apparently are those related to pricing; talk that CIMB is still interested in RHB, hence the rationale for RHB buying OSK; and that most department heads proposed for the investment bank are purportedly from OSK.
“At a pricing of close to two times book value, the goodwill incurred for taking over OSK could be around RM1bil,'' said an industry player.
At at Dec 31, 2011, OSK group shareholders' fund stood at RM1.041bil.
“That would be a lot to pay if it is indeed true that RHB could be taken over by CIMB.''
Also, this is regarded to be a complex deal that will see RHBCap's reach extended to markets like Indonesia, Cambodia, Hong Kong and China.
RHBCap and OSK had, as far back as Jan 11, applied for the central bank's approval for their merger.
Internally, RHB has set a target for the completion of the deal at the end of the third quarter.
Analysts said no doubt, this was a merger and acquisition story, but there could be a knee-jerk reaction on earnings at RHB, depending on the price paid for OSK. “As long as the valuation is not significant, the deal would be neutral to positive,'' said an analyst.
The regional footprint that RHB gains from this deal will be significant especially when it has had little success so far, with its acquisition of PT Bank Mestika dependant on changing bank rules in Indonesia.
“Investment banking operations in RHB have been quiet they have lost quite a few people who have not yet been replaced,'' said another analyst.
“This deal helps them get some replacements.''
With RHB mostly in institutional business and OSK in the mid-sized and commercial sector, there appears to be little overlap between the two - The Star Biz
Friday April 27, 2012
《福布斯》全球2000大企业 18马企入榜 马银行领头
（吉隆坡21日讯）美国《福布斯》杂志公布2012年全球2000家大企业排名，亚太地区连续第五年成为上榜公司最多的地区，达733家，而马来西亚则有18家榜上有名。
《福布斯》最新一期全球2000家大企业排行榜，是根据企业的销售额、利润、资产和市值等各种指标综合评定而出。
榜单显示，美国公司仍是榜单的最大赢家，上榜公司达到258家。
日本以145家紧随其后，第三名则是中国，共有136家企业上榜。
值得一提的是，亚太地区上榜企业数量比去年增加32家，总量达到733家，连续5年排名第一，今年这一地区新上榜公司也最多，达到32家。
欧洲与中东及非洲公司有605家上榜，仅次于亚太地区。
大马方面，今年18家公司入榜，比去年少2家，不过，马银行（Maybank，1155，主板金融股）仍是榜中排名最高的大马企业，排名366，去年排名为458名。
紧接着是联昌国际（CIMB，1023，主板金融股），排名493位，也是唯一两家挤进前500名的大马企业。
美企包办前三名
我国最大的种植公司森那美（Sime，4197，主板贸服股）排在第530，华人富商丹斯里郑鸿标领军的大众银行（PbBank，1295，主板金融股）名列651名。
18家入榜的大马企业中，共有8家跻身前1000名。
榜单前三名全被美国公司占据，埃克森美孚公司的综合评分问鼎榜单，将之前连续两年占据冠军的摩根大通赶下第一的宝座，通用电气公司位居第三。
在市值方面，苹果以5460亿美元（1.67兆令吉）高居第一，而去年其市值只有3243亿美元（9939.8亿令吉）。
雇用8300万人
市值的大涨让苹果的综合排名也从去年的第47位蹿升到了第22位。
在2000大企业中，总计营收达36兆美元（110.34兆令吉），上涨幅度达12%，利润达到2.64兆美元（8.09兆令吉），资产和市值分别达到149兆美元（456.7兆令吉）和37兆美元（113.4兆令吉）。
这些公司在全球范围内雇用的员工达到8300万人。
中国拉近美日距离
榜单前十大中有两家中国公司上榜，中国工商银行和中国石油分别位居第5位和第7位。
《福布斯》评论说，中国在大型银行的“引领”下，上榜公司与日俱增，不断拉近与美国和日本的距离。
据了解，中国今年新增15家企业上榜，上榜总数达到136家，居亚太第二、全球第三。
《福布斯》中文网总编周建工表示，中国公司上榜增速如此迅猛，主要是受近年来中国公司IPO数量较多且公司本身发展势头良好影响。
Various issues need to be resolved for RHB-OSK merger to proceed
KUALA LUMPUR: Securing the approvals of overseas banking and financial regulators, the search for a “neutral” investment banking head and the need to iron out other “political and management” issues are some of the reasons why the RHB Capital Bhd (RHBCap)-OSK Holdings Bhd merger has yet to be concluded.
Speaking at separate press conferences after the AGMs of their respective companies held yesterday, top officials from RHBCap and OSK shared similar views when asked about the proposed merger.
RHBCap group managing director Kellee Kam said he hoped the proposed merger would be concluded by the third quarter of this year.
“We are actively in dialogue with Bank Negara, part of this is because of the complexities of the transaction which transcends various regional jurisdictions.
At OSK: Ong (left), chairman Datuk Nik Mohamed Din and U fielding questions at a press conference.
“Our current target for the completion of the proposed merger is towards the end of the third quarter, but given the various foreign jurisdictions involved, please allow some flexibility in that,” Kam said.
The proposed merger, which would create the largest stockbroking firm in the country with close to a 15% market share, was first mooted last September.
OSK chief executive officer cum executive director U Chen Hock said Bank Negara and the Securities Commission had additional queries for both RHBCap and OSK after the submission of the documents to the regulators.
“In the run-up from the submission of the application, we, together with RHBCap, have answered some of the queries.
“We have provided all the necessary answers for the queries,” U said, without wanting to disclose what these additional queries were.
OSK director and major shareholder Ong Leong Huat said that whatever the regulators had wanted to know had already been answered. He added that OSK would now wait for the regulators' response.
At RHB: Kam and RHB Bank MD Johati Abdul Muid (right) meeting the media.
“Of course (this deal) has still to get the Finance Ministry's approval even after Bank Negara (and SC) approval as it involves a change of ownership in a bank,” Ong said without giving any timeframes.
U said the proposed merger would not only need the approval from the Malaysian regulators but also required the green light from other foreign regulators in which both groups are operating in.
“We have to clear the domestic regulators first before we move to the next step. We will then need to get approval from regulators in Singapore, Hong Kong, Cambodia, Indonesia and Thailand,” U said.
OSK runs stock-broking businesses in Indonesia, Cambodia, Hong Kong, Thailand and China, while RHB has a presence in Singapore, Thailand and Brunei. RHB is also in the process of acquiring an Indonesian lender.
RHBCap's Kam said: “One of the reasons why we are pretty excited about this merger is that it will help us expand into markets where OSK has a presence in,”
Meanwhile, people close to the proposed merger said RHBCap had been looking to hire a new CEO for the merged investment banking business. “They are looking for a candidate that will be seen as neutral and one who is able to bring together and strengthen the merged investment banking business,” said an industry observer.
At the moment, OSK's investment banking business is seen as more “entrepreneurial-driven” while RHBCap is generally seen as a more “conservative” outfit.
From : The Star Business
僑豐興業乐观待審批‧興業：或第三季完成
（吉隆坡10日訊）興業資本（RHBCAP，1066，主板金融組）與僑豐控股（OSK，5053，主板金融組）屬下僑豐投資銀行的合併計劃現仍處於國家銀行審批階段，有望在未來數週內有消息，並放眼在今年第三季完成整體收購計劃。
兴业资本董事经理甘志强表示，公司和国家银行有过几次会面，预计第三季可完成收购侨丰控股计划。
兴业资本已在今年1月中呈交收购侨丰控股计划予国行，市场一直关注国行何时会给予批准。 侨丰控股董事黄宗华也透露，据了解，兴业资本已经将所需的资料呈交给国行，现在只能等待批准。
不过，在获得国行首肯后，这项交易还需获得证券监督委员会、财政部，以及公司海外业务据点的监管单位同意，因此需时进行。
询及对这项合并计划事成的信心，黄宗华回应：“我觉得没有理由为什么（不获批准）……”
兴业资本董事经理甘志强表示，公司和国家银行有过几次会面，预计第三季可完成收购侨丰控股计划。
兴业资本已在今年1月中呈交收购侨丰控股计划予国行，市场一直关注国行何时会给予批准。 侨丰控股董事黄宗华也透露，据了解，兴业资本已经将所需的资料呈交给国行，现在只能等待批准。
不过，在获得国行首肯后，这项交易还需获得证券监督委员会、财政部，以及公司海外业务据点的监管单位同意，因此需时进行。
询及对这项合并计划事成的信心，黄宗华回应：“我觉得没有理由为什么（不获批准）……”
RHB and OSK : Acquisition or Merging?
From RHB's view
KEY DEVELOPMENTS IN 2011
Our proposed acquisition of OSK Investment Bank (OSKIB), currently pending approval from Bank Negara Malaysia, marks another significant milestone towards the creation of the largest investment bank and brokerage houses in Malaysia. The proposed acquisition will accord us immediate access to the large retail broking market that will complement the Group’s strong institutional broking position as well as to have access to important strategic markets in the region with long-term growth potential. The RHB Banking Group will also be able to leverage on the OSKIB Group’s human capital to further expand RHB’s talent bandwidth. ( From RHB 2011 Annual Report)
From OSK's view
The most significant corporate development for 2011 was when the Group commenced negotiations with RHB Capital Berhad (RHBC) on a possible merger of the businesses of OSK investment banking group and RHB banking group (Possible Merger) upon receiving Bank Negara Malaysia (BNM) approval on 13 October 2011. Subsequently, on submitted an application to BNM seeking the relevant approvals in relation to the Possible Merger from the Minister of Finance (MOF) (through BNM). (From OSK FY 2011 Annual Report )
KEY DEVELOPMENTS IN 2011
Our proposed acquisition of OSK Investment Bank (OSKIB), currently pending approval from Bank Negara Malaysia, marks another significant milestone towards the creation of the largest investment bank and brokerage houses in Malaysia. The proposed acquisition will accord us immediate access to the large retail broking market that will complement the Group’s strong institutional broking position as well as to have access to important strategic markets in the region with long-term growth potential. The RHB Banking Group will also be able to leverage on the OSKIB Group’s human capital to further expand RHB’s talent bandwidth. ( From RHB 2011 Annual Report)
From OSK's view
The most significant corporate development for 2011 was when the Group commenced negotiations with RHB Capital Berhad (RHBC) on a possible merger of the businesses of OSK investment banking group and RHB banking group (Possible Merger) upon receiving Bank Negara Malaysia (BNM) approval on 13 October 2011. Subsequently, on submitted an application to BNM seeking the relevant approvals in relation to the Possible Merger from the Minister of Finance (MOF) (through BNM). (From OSK FY 2011 Annual Report )
RHB to wrap up OSK, Bank Mestika acquisitions
RHB Capital Bhd (RHBCap), which was reported to be signing a merger deal with OSK Investment Bank Bhd this week, reported an 8.4% drop in net profit in the last quarter to RM348.4 million from a year earlier on higher provisions.
Full-year net earnings, however, improved 5.7% to RM1.5 billion, or 68.9 sen a share.
"We are focused on concluding our proposed acquisitions of PT Bank Mestika in Indonesia and OSK Investment Bank, which when completed, will provide us access to all the key Southeast Asian markets and move us closer to realising our regionalisation aspirations,'' chairman Datuk Mohamed Khadar Merican said in a statement yesterday.
RHBCap had on Jan 11 submitted an application to Bank Negara Malaysia and the Minister of Finance to approve the merger of RHB banking group and OSK Investment Bank.
Meanwhile, the bank said on Feb 24 it had agreed to extend the deadline to complete the acquisition of an 80% stake in Bank Mestika from Feb 29 to June 30.
RHB derived most of its income from operations at home.
The bank said yesterday domestic loans grew by 15.7% in 2011 to outpace the industry's 13.6% growth rate. Its share of domestic loans improved to 9.3% as at Dec 31, 2011 from 9.1% a year ago.
Customer deposits grew 22.7% to reach RM115.9 billion, and the growth momentum, too, was faster than the industry's 14.3%.
To reward shareholders, RHBCap has proposed a final dividend of 17.84 sen a share to bring its full-year payout to 25.4 sen a share.
"This is in line with the group's stated dividend policy of 30% payout ratio," Mohamed Khadar said.
Posted on 29 February 2012 - 05:36am
