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RETAIL INVESTMENT | Cesar Tordesillas, Malaysia

RHBCap-OSK merger likely to be all-share deal

The proposed merger between RHB Capital and OSK will be paid for entirely in shares, according to banking sources.


The deal is expected to be sealed soon.

OSK is expected to receive RHBCap shares worth around RM2bil the reported price of the deal
in exchange for the former's investment banking business.

At this stage, it is not clear what OSK will do with the RHBCap shares.

Sources said it was likely OSK might hold on to the RHBCap shares for a while before deciding what to do.

“It is possible that some sort of agreement has been struck for OSK not to dispose of those shares immediately or to distribute them quickly to its shareholders via dividend in specie. This is to ensure that there would not be an immediate overhang of RHB shares in the market and more importantly, it will give OSK time to better understand what the merged entity is all about as well as understand RHBCap's plans going forward,” a banker said.

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