KUALA LUMPUR: A pricey deal which would not have created value for shareholders could have been the possible reasons for MALAYAN BANKING BHD [] (Maybank) to pull out of negotiations for the purchase of RHB Capital.
The RM10.80 per share in RHB Capital, paid by Aabar Investments for Abu Dhabi Commercial Bank's 25 per cent stake in RHB Cap, "will not have been value creating for Maybank shareholders," said Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar on Friday, June 24.
Asked whether the high price of RM10.80 per share was the stumbling block for the merger, he said: "When we announced the possible merger, we believed the transaction would, if executed properly, be creating value for our shareholders.
"Having said that, there were recent developments, which created certain expectation in terms of valuation and we believe that valuation will be very difficult to create for our shareholders".
This was among reasons for Maybank to pull out of negotiations, he told reporters on the sidelines of the Government Linked Companies (GLC) open day.
Wahid said at this juncture, the bank would continue to focus on organic growth activities but was also open, at the same time, to any transaction opportunity.
"Maybank is progressing well. We have reported our third quarter results and have generated RM3.3 billion in profits for the nine-month period. We are on track for further improvement," he added. - Bernama
The RM10.80 per share in RHB Capital, paid by Aabar Investments for Abu Dhabi Commercial Bank's 25 per cent stake in RHB Cap, "will not have been value creating for Maybank shareholders," said Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar on Friday, June 24.
Asked whether the high price of RM10.80 per share was the stumbling block for the merger, he said: "When we announced the possible merger, we believed the transaction would, if executed properly, be creating value for our shareholders.
"Having said that, there were recent developments, which created certain expectation in terms of valuation and we believe that valuation will be very difficult to create for our shareholders".
This was among reasons for Maybank to pull out of negotiations, he told reporters on the sidelines of the Government Linked Companies (GLC) open day.
Wahid said at this juncture, the bank would continue to focus on organic growth activities but was also open, at the same time, to any transaction opportunity.
"Maybank is progressing well. We have reported our third quarter results and have generated RM3.3 billion in profits for the nine-month period. We are on track for further improvement," he added. - Bernama
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