Abu Dhabi: Abu Dhabi Commercial Bank (ADCB) has been given the approval to acquire a 25 per cent stake in RHB Capital Berhad (RHB) from the Employees Provident Fund Board (EPF), one of the largest pension funds in Asia which owns 82 per cent of RHB.
The approval was given by the Ministry of Finance via Bank Negara on February 29. This decision follows a period of exclusive negotiations between ADCB and EPF relating to the proposed acquisition and satisfactory due diligence carried out by ADCB on the RHB Cap group.
"We have preference for investing in Asia in general and in Malaysia in particular, as Malaysia is already a partner in Tamouh, the company assigned to develop 60 per cent of Al Reem Island, and we have Mubadala and Aldar Properties also venturing in investments there," Eirvin Knox, ADCB's chief executive officer, told Gulf News.
RHB Cap is one of the largest fully integrated financial services groups in Malaysia and a growing financial services company in Asean. RHB Cap and its subsidiaries are taking the lead in providing commercial banking, investment banking, Islamic banking, insurance and asset management services to Malaysian and regional customers.
Honours
RHB Islamic Bank has been awarded the "Most Innovative Products in Islamic Project Financing" by KLIFF (2006), the "Lead Manager Award Islamic Number of Deals" by RAM (2006), and the "Most Improved Islamic Bank in Asia" by Euromoney (2006). RHB Asset Management is one of the leading private asset managers domestically.
"One of the major reasons for our investment in RHB is the strength it acquires in the field of Islamic banking, which is witnessing remarkable growth worldwide relative to growth in conventional banking," Knox said.
A further announcement will be made after the sale and purchase agreement for the proposed acquisition has been executed. The completion of the proposed acquisition is conditional upon the approval from the Foreign Investment Committee being obtained.
CIMB Investment Bank Berhad is the appointed adviser of ADCB and Goldman Sachs is acting as the adviser to EPF.
By Ahmed A. Elewa
© Gulf News 2008
