Reuters logo
CIMB CEO urges shareholder patience on final merger terms
August 13, 2014 / 3:53 AM / 3 years ago

CIMB CEO urges shareholder patience on final merger terms

KUALA LUMPUR, Aug 13 (Reuters) - CIMB group chief executive Nazir Razak has urged shareholders concerned by the bank’s planned merger with RHB Capital and Malaysia Building Society to hold off making a decision until the deal’s final terms are known.

“The proposal is not there yet for shareholders to consider, so I would urge everyone to wait for the details before coming to any conclusion,” Nazir told reporters on Wednesday. “Any shareholder for that matter, should wait for the details before taking a position on it.”

Nazir was responding to news reports that Aabar Investments, Abu Dhabi’s sovereign investment fund and a major shareholder in RHB, was critical of the deal out of fear that its 21.4 percent stake would be undervalued.

“It’s something that we hope everyone would see creates value for them. Otherwise they would have a right to disagree,” Nazir said.

CIMB, Malaysia’s second-largest lender, on July 10 said it plans to create a mega Islamic bank by merging with RHB and Malaysia Building Society. The three banks have until October to negotiate and finalise pricing, structure and other relevant terms.

Nazir said leadership of the new entity will be decided by the relevant shareholders. Nazir announced in July that he will be stepping down from his post as group CEO to resume as the bank’s chairman from September.

“When you merge, what happens is that there will be new stakeholders. They’ll have to decide who will lead the new entity. That’s down the road,” he said.

The mega Islamic bank resulting from the merger will have a cross-border presence sizable enough to win big mandates, traditionally won by the likes of HSBC Holdings PLC and Standard Chartered PLC, analysts say. (Reporting by Yantoultra Ngui; Writing by Al-Zaquan Amer Hamzah; Editing by Matt Driskill)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below