Friday, May 9, 2008

Arab bank buys 25% RHB Cap stake for RM3.87b

The Star Online
KUALA LUMPUR: The Abu Dhabi Commercial Bank (ADCB) is acquiring a 25% stake in RHB Capital Bhd, which owns RHB Bank, from the Employees Provident Fund (EPF) for RM3.87bil.

In a joint statement issued on Thursday, the purchase price was at RM7.20 per RHB Cap share, which was nearly 38% above the price of RHB Cap shares of RM5.25 at midday.

At RM3.87bil, the deal is the largest investment to date by a Middle East investor into the Malaysian financial sector to date.

“The landmark investment will pave the way for a strategic partnership between the EPF and ADCB and drive RHB Cap’s ambition to become one of the top three financial service providers in Asean by 2020,” they said in a statement.

With the 25% stake, ADCB will become the second largest shareholder of RHB Cap. After this sale, the EPF, as the single largest shareholder, will reduce its shareholding from the 82% to 57%.

The EPF took control of RHB Cap after it acquired an 82% stake following the completion of a general offer in July 18, 2007.

No comments: