Record takeover deal

  • Nation
  • Thursday, 16 Mar 2006

IT'S A DEAL: Happy handshake between CIMB group chief exective Dato Nazir Razak and Southern Bank Bhd chief executive director Tan Sri Tan Teong Hean after a joint press conference.

KUALA LUMPUR: Malaysia’s largest corporate takeover has been realised.  

After resisting for months in wait of a better deal, the Southern Bank Bhd (SBB) board of directors accepted yesterday the RM6.7bil offer by Bumiputra-Commerce Holdings Bhd (BCHB). 

The merged entity, to be known as CIMB Bank, will have an asset size of RM152bil, and the deal is expected to trigger the next wave of mergers in the banking industry. 

Under the deal, BCHB will pay RM4.30 cash for each SBB share.  

Other features include: 

  • VOLUNTARY general offer for SBB shares to be completed in May/June, full integration expected next year at the earliest; 

  • SBB to be delisted; and 

  • SBB to have three board representatives on key subsidiaries of BCHB. 

    The acquisition is said to be significant for BCHB, as it will not only plug the gaps in its business ahead of market liberalisation, but will also pave the way for the group to export its consumer banking products. 

    At a press conference yesterday, CIMB group chief executive Datuk Nazir Razak said: “We want to be a regional player... to achieve the efficiency to compete with international banks. I think Malaysia alone is too small a market. 

    “Therefore, we need to go regional, and be good at integrating across borders as well.” 

    SBB chief executive director Tan Sri Tan Heong Hean, when asked how he felt about the deal, said: “I feel like having a margarita (a drink).”  

    On the revised price, from RM4.15 a share to RM4.30 cash, he said: “I am not unhappy with the price.”  

    See StarBiz for more details.

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