Thursday, Aug 16, 2007
(Adds analyst comment, quote from banker familiar with the matter)
KUALA LUMPUR (Dow Jones)--Malaysia's fourth-largest lender RHB Capital Bhd. (1066.KU) Thursday said its 100% owned unit RHB Bank Bhd. has been given approval in principle by the central bank to commence talks to sell "a combination of RHB Bank branches, assets and liabilities" to Kuwait Finance House (Malaysia) Bhd.
No other details were given in the filing to the stock exchange.
Kuwait Finance Malaysia, a unit of Kuwait Finance House KSC (KFIN.KW), previously expressed interest in taking a stake in RHB Capital, but said in May, it would temporarily shelve plans to buy the stake in RHB Capital to concentrate on its organic expansion strategy in Malaysia.
RHB Capital and Kuwait Finance House couldn't be immediately reached for comment.
"I heard Kuwait Finance is asking for 50 branches but it may not get that," said a banker familiar with the matter.
Presently, RHB Bank has 180 branches, which offer conventional and Islamic banking products and services.
Analysts are of the view that RHB Bank may sell some of its branches, as "it has some duplications (of branches) in Kuala Lumpur."
"The move is positive as it will enable RHB to streamline its operations and enhance its cashflow," said a banking analyst with a foreign research house, who didn't want to be named.
-By Elffie Chew, Dow Jones Newswires; (603) 2692 5254; elffie.chew@dowjones.com
(END) Dow Jones Newswires
16-08-07 1034GMT
