27 April 2012
RHB and OSK merger update - Minister of Finance's approval for the proposed merger has been obtained!
(RHBCAP closing stock price yesterday (30.4.2012) was RM 7.25)
RHB Capital Bhd and OSK Holdings Bhd have received the Minister of Finance's (MoF) approval for the proposed merger of the businesses of the RHB Banking group and OSK Investment Bank group.
They announced to Bursa Malaysia on Friday they had received notification from Bank Negara Malaysia (BNM) about the MoF's approval, confirming The Star report.
They said the terms and conditions of the proposed merger would be announced subject to the execution of the conditional share purchase agreement for the proposed merger.
The Star reported the merger deal is believed to have received BNM's nod and was awaiting approval at the Finance Ministry level.
It also reported that while most analysts had expected this nod, some industry players expressed surprise the issues said to have held up the approval process could be resolved so fast.
The news report said among the issues apparently were those related to pricing; talk that CIMB was still interested in RHB, hence the rationale for RHB buying OSK; and that most department heads proposed for the investment bank were purportedly from OSK.