RHB Capital Bhd's shares on Bursa Malaysia rose after the mega-merger plan between the bank with CIMB and Malaysian Building Society Bhd (MBSB) was called off.
At 11 am, the share price rose eight sen to RM7.73 with 844,700 shares changing hands. The counter opened with a 15 sen premium at RM7.80.
With the merger axed, AllianceDBS said it expects RHB Capital to allocate additional expenses or capital expenditure in a new core banking system.
"We believe RHB Capital will focus again on its 'IGNITE' strategy which is aimed at building up its domestic and regional franchises by 2020.
"Its strategy to be a regional powerhouse in Asean+ (inclusive of Greater China) is the pillar in this agenda. Its Singapore business proposition to revive the small and medium enterprises segment is gaining traction," it said in a research note today.
The mega-merger discussions were ceased due to the current economic conditions, the parties said in a joint statement on Wednesday.
RHB Capital Group Managing Director Kellee Kam said: "We undertook discussions for the proposed merger on the premise that we would be able to arrive at a value-enhancing proposal for our stakeholders and bring it to our respective shareholders.
"Protecting and creating stakeholder value is paramount to all parties and given the changes in the environment, we could not conclude a case to proceed further," he added.
Bernama
Thu Jan 15 2015
The mega-merger between discussions between RHB, CIMB and MBSB were ceased due to the current economic conditions. - File pic
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