Bursa Malaysia Stock Watch

CIMB Group Holdings: Maintain Sell - Neutral on the RBS acquisition

kltrader
Publish date: Tue, 03 Apr 2012, 09:32 AM
kltrader
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Depends on cross-synergies. While the acquisition of Royal Bank of Scotland's (RBS) assets will provide CIMB with a more extensive cash equities/ECM platform in Asia, the deal is largely neutral on CIMB's near-term financials and value enhancement will very much depend on just how quickly the group can reap cross-synergies across the region. Our Sell call and RM6.80 TP (target P/BV of 1.9x, 2012 ROE: 16.1%) are maintained.

Maybank Research - 3 April 2012

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