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Friday March 9, 2007

EPF gains control of RHB banking group


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KUALA LUMPUR: The Employees Provident Fund (EPF) has won in its bid to gain control of the RHB banking group, beating off rival buyers EON Capital Bhd and a Kuwait Finance House-led consortium.  

Utama Banking Group Bhd (UBG) announced yesterday that its board had accepted a revised offer of RM2.25bil cash from EPF for all the stocks the former owned in Rashid Hussain Bhd (RHB), the ultimate holding company of the banking group.  

Upon completion of this transaction, subject to approval from the authorities, EPF will make a general offer (GO) for the rest of the shares and loan stocks in RHB, and a GO for RHB Capital Bhd (RHBCap), a subsidiary of RHB, which owns 70% of RHB Bank Bhd. The offer for RHBCap is RM4.80 a share.  

If EPF gets full acceptances for its GOs, it would pay out an additional RM6.4bil, making a total of RM8.69bil cash for 70% of the banking group. Khazanah Nasional Bhd owns the remaining 30% of RHB Bank.  

EPF’s CEO Datuk Azlan Zainol said the purchase of UBG’s 32% in RHB would seal the Fund’s control of the RHB banking group.  

Related story:
Cash rich Utama Banking Group 

 

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