KUALA LUMPUR: CIMB Group
Bhd, RHB Capital Bhd and Malaysia Building Society Bhd
(MBSB) – which are involved in a three-way merger, have halted trading in their securities from 2.30pm to 5pm on Tuesday.
According to Bursa Malaysia, they had requested for the suspension for a material announcement which would link to a decision if the Employees Provident Fund (EPF) can vote on the merger.
StarBiz reported on Tuesday that 10 individuals, who are members of Bursa Malaysia’s listing committee, will meet Tuesday to decide on an application for a waiver from a listing rule that prohibits the EPF from voting on the proposed merger.
The EPF is a related party in the transaction, as it currently owns 14.6%, 41.5% and 64.6% in CIMB, RHB Cap and MBSB, respectively.
Under Bursa’s listing rules, the EPF is not allowed to vote as it is a shareholder in RHB Cap in the proposed takeover of CIMB.
CIMB shareholders will own 70% of the merged CIMB-RHB Capital Group while RHB Capital shareholders will hold the remaining 30% under a proposed merger.
Concurrently, CIMB Islamic, RHB Islamic and MBSB will merge to form a mega-Islamic Bank.