Kuala Lumpur, May 8, 2008 (WAM) - The Employee's Provident Fund of Malaysia (EPF) and Abu Dhabi Commercial Bank (ADCB) signed Thursday the sale and purchase agreement to seal ADCB's acquisition of 25 percent equity stake in RHB Capital Berhad (RHB Cap) from EPF.
Based on a purchase price of RM7.20 per share, the deal is valued at RM3.876billion, the largest by a Middle East investor into the Malaysian financial sector so far. This landmark investment will pave the way for a strategic partnership between EPF and ADCB and drive RHB Cap?s ambition to become one of the Top three financial service providers in ASEAN by 2020. In a gala function held at Putrajaya corporation HQ today, this mega deal was signed on behalf of EPF by Tan Sri Samsuddin Oman, Chariman and Datuk Azlan Zainol, Chief Executive Officer and ADCB was represented by H.E. Saeed Al Hajeri, Chairman of ADCB. The glittering ceremony was attended by H.H. Sheikh Hamed Bin Zayed Al Nahyan Chief of Abu Dhabi Crown Prince's Court and Chairman of the ZoneCorp, HE. Dato Sri Mohammed Najib Bin Tun Abdel Razzek, Deputy prime minister of Malaysia, HE Khaldoun Al Mubarak, CEO of Mubadala Development Company, HE Mohammed Nour, Malaysian Finance Minister, and number of dignitaries from both sides. With this deal ADCB will become the second largest shareholder of RHB Capital with a 25 percent holding. Post this sale, the single largest shareholder EPF will own about 57 percent down from the 82 percent stake it acquired after completion of a general offer for the banking group on July 18, 2007. The approval for this deal was given by Malaysian Ministry of Finance via Bank Negara Malaysia on February 29th and Foreign Investment Committee on March 21, 2008. The purchase process is expected to be completed soon. Sheikh Hamed said the agreement was consistent with the Abu Dhabi Government's strategic plan which calls for empowering the private sector and enabling its expansion both regionally and internationally. "This agreement reflects the economic growth witnessed by the UAE in general and the Emirate of Abu Dhabi in particular. It is clearly evident that economic development policies have begun to bear fruits. We are delighted to see our goals achieved," Sheikh Hamed said. Sheikh Hamed called on the other private sector entities to emulate the success made overseas by some companies such as ADCB and Mubadal Development Company. "Mubadal and the ADCB are making headway in boosting the country's economic growth," he said. Speaking at an event hosted by EPF to mark the occasion, Datuk Azlan Zainol said, "We are very pleased to enter into a strategic partnership with ADCB, a leading full-service commercial bank operating in the GCC region with strong footprints in retail, commercial, corporate and high net worth segments in the United Arab Emirates. ''RHB Capital and ADCB will now be uniquely positioned to leverage on growing business flows between the GCC and ASEAN and strengthen both banks' strategic position in the global Islamic Banking market," he added. H.E. Saeed Al Hajeri said, "This acquisition enables both ADCB and RHB Capital to promote the links between the respective countries and regions while generating significant value for stakeholders in the process due to inherent synergies. It is ADCB's intention to support RHB Capital in its strategic agenda of being a top financial services provider in ASEAN.""The plan to double profit in 3 years is very attractive, very aggressive and very possible. My personal belief is that they will reach that target easily."Al Hajeri said. "In our assumptions we look at future value. That's why we are not looking to make a quick buck. We are long term investors. "The goal is to become No 1 bank in South East Asia." Al Hajeri indicated. Eirvin Knox, Chief Executive Officer of ADCB noted that, "The unique feature of this alliance between ADCB and RHB Capital is the remarkable similarity covering operational, product and strategic areas. Both institutions will benefit from the opening of new markets and new products and structures that can be offered to customers. ''We are very happy to be a part of this very deal which holds immense future potential for both organizations," he added.Copyright Emirates News Agency (WAM) 2008.
