Maybank keeps RHB option open

KUALA LUMPUR: Maybank, which called off merger talks with RHB Capital Bhd in June, is still keeping its options open for a possible acquisition if the price is right.

President-cum-chief executive officer Datuk Seri Abdul Wahid Omar said RHB was a very good bank and the combination between Maybank and RHB could create a significant amount of synergy, resulting in a significant holder value creation.

“We're always open,” he said in a recent interview with Patrick Jenkins, editor of Financial Times' View From The Top.

Record year: Wahid reckons Maybank's fiscal year 2011 will set another record.

 

 

He was commenting on whether the largest banking group was still looking for an opportunity to acquire RHB if the price was revised downwards.

“I think there is no reason why it shouldn't be able to continue on its own. I think it has demonstrated its capability to grow on its own.

“For now, on our part, we have decided to stand down and not to proceed at this juncture,” he said.

Abdul Wahid said at that time Maybank had not gone down to actually making a formal bid for it; but given the expectations created, it could be challenging to come up with a compelling proposition.

It was reported that the proposed merger talks were called off not too long after Abu Dhabi Commercial Bank started to sell its 25% stake to Abu Dhabi-based investment fund, Aabar Investments, at a relatively high price.

The fund paid RM10.80 per share for the stake which was higher than the fair value of around RM10.50 per share.

Turning to the financial results, Abdul Wahid said the financial year ended June 30, 2011 would be another record year.

Last year, he said the banking group reported a record profit after tax of RM3.8bil and for the first three quarters, it had already touched an after-tax profit of RM3.3bil.

“At the rate we're going, we reckon that this is going to be another record year.
“We're encouraged by the progress made across the board, both in terms of asset growth as well as the bottom line. I think we're quite optimistic of the future,” he said. (Bernama)