Malaysian lender RHB Capital Bhd will finalise its merger proposal with investment bank OSK Holdings Bhd next month, local newspaper The Star said on Tuesday, quoting an RHB official.
RHB and OSK have been in merger discussions since receiving approval from Malaysia’s central bank in October to commence negotiations, the success of which will create the country’s largest stock broker.
“Things are going well at this stage. We hope to be able to come to an agreement and finalise everything by mid-December,” RHB’s managing director, Kellee Kam, was quoted by the newspaper as saying.
Kam did not disclose details regarding the shareholding structure or how the deal will be funded.
RHB, Malaysia’s fifth-largest lender with a market capitalisation of about $5.1 billion, was itself a takeover target of larger rivals Malayan Banking Bhd and CIMB Group Holdings Bhd, but talks fell through in June due to pricing considerations.
OSK, a financial group built up by veteran broker Ong Leong Huat, has interests in investment banking, wealth management and stockbroking. ($1 = 3.136 Malaysian Ringgit) (Reporting by Min Hun Fong; Editing by Jane Lee)