RHB Capital: No merger talks with AMMB

RHB Capital Bhd CFO Yap Choi Foong and group MD Khairussaleh Ramli .

RHB Capital Bhd (RHBCap) has no plans for any mergers or acquisition (M&A) deals in the near term, as it looks to grow organically based on its reframed strategy, a top executive with the bank said 

The clarification comes amidst speculation that RHB Capital Bhd had been in merger discussions with AMMB Holdings Bhd. Besides, earlier this year, the proposed three-way merger involving RHB, CIMB Group Holdings Bhd and Malaysia Building Society Bhd was called off due to unfavourable conditions.

The banking group said there it was not contemplating any M&A deals but will focus on executing its reframed strategy for internal reorganisation announced Friday, in a media briefing.

“M&A opportunities must make sense in the form of being value accretive and complementary, not just for the sake of becoming a bigger group,” RHBCap chief executive officer and group managing director Khairussaleh Ramli said.

“We believe that we can roll on our own at this point of time. What is key is to focus on our fundamentals, improving our businesses,” he told local media, after announcing the group first-half 2015 financial results.

Khairussaleh reiterated that RHBCap has no current plans to enter into merger talks with AMMB Holdings Bhd, which was earlier reported to have stalled. saying that the former would prefer to focus on its restructuring exercise and reframed strategy for now.

Moving forward, the bank will focus on value creation for shareholders, anchored on boosting revenue, differentiating its customer experience and digital ecosystem and engaging talent redeveloping teams.

Among the areas that Khairussaleh noted for enhancement were services for the SMEs, for its Singapore operations, asset management and treasuries.

“Our Singapore business has grown 85 per cent in the past year, contributing over 80 per cent of our overseas revenue,” he noted.

Khairussaleh also said the group targets to complete its rationalisation plan by November, and restructure RHB Bank Bhd as the new operating holding company in January.

For that, RHB Bank will take over RHBCap’s listing status on the Main Market of Bursa Malaysia in January, after completing a proposed rights issue to raise gross proceeds of up to MYR2.5 billion, and the internal reorganisation of streamlining RHBCap’s subsidiaries to RHB Bank.

The proceeds raised will be utilised to capitalise RHB Bank and finance working capital requirements for RHB Bank Group.

The group aims to achieve an annualised return on equity (ROE) of 13 per cent in 2017 and 15 per cent ROE in 2020. For loan growth, RHBCap is targeting to achieve between 6% and 7% for 2015.

Also read:

RHBCap appoints Khairussaleh Ramli as new group CEO, MD

MY dealbook: Khazanah, Asia Bioenergy, RHB Asset, Kretam

CIMB-RHB-MBSB: mega merger aborted?

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.