Malaysia's RHB Bank wins approval for mergers

Malaysia's RHB Bank has received the final regulatory approval for its merger with two other financial institutions, enabling the bank to complete its merger well ahead of the Dec 31 deadline.

RHB Capital Bhd in a statement here Monday said it had received the Foreign Investment Committee's (FIC) approval for the acquisition of Delta Finance and Interfinance by subsidiary RHB Bank Bhd.

It said this would pave the way for RHB Capital to complete proposed corporate exercise, among others, the proposed acquisition of the entire issued and paid-up share capital of Delta Finance by RHB Bank.

It would also complete the proposed acquisition of 90% of the issued and paid-up share capital of Interfinance Bhd.

This also included the proposed compulsory acquisition of the remaining 10% of the issued and paid-up share capital of Interfinance by RHB Bank pursuant to Section 180 of the Companies Act, 1965.

The other included the proposed merger of the finance company business of Interfinance with Delta Finance in line with Bank Negara Malaysia's domestic banking consolidation programme.

Meanwhile, the SC has approved on Oct 19, 2000, the name RHB Securities Holdings Bhd for the new company which would be incorporated pursuant to the RHB Group's restructuirng and financing scheme.

"The proposed name is now subject only to the approval of the Registrar of Companies," the statement said.

The RHB Group, had on Sept 25, announced its group-wide restructuring and financing scheme in accordance with BNM's domestic banking consolidation programme and the SC's policy framework for the stockbroking industry consolidation.

(BERNAMA)