malaysias-rhb-buys-indonesias-bank-mestika

Malaysia's RHB buys Indonesia's Bank Mestika

Malaysia's RHB Capital agrees to pay $329 million for 80% of Bank Mestika in Indonesia and will fund the deal through a rights issue.

Malaysia's RHB Capital will buy 80% of Indonesia's Bank Mestika Dharma for Rp3.118 trillion $329 million. RHB will fund the deal through a M$1.3 billion $384 million rights issue.

RHB Capital is paying 3.5 times Bank Mestika's book value of Rp1.114 trillion as per December 31, 2008, and 23 times the Indonesian bank's earnings for calendar 2008.

RHB Capital is the holding company of RHB banking group, the fourth-largest financial services provider in Malaysia. RHB Bank is the largest entity in the group. In 2008 RHB Bank earned M$1.3 billion before tax, registering growth of 45% over the previous financial year.

Malaysia's Employees Provident Fund EPF is the largest shareholder in RHB Capital with...

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