Journey to Wealth
CIMB - Drops RBS India
THE BUZZ
CIMB Group announced yesterday that due to certain legal constraints, it will be excluding RBS' cash equities, equity capital markets and M&A corporate finance business in India from the Sale and Purchase Agreement it entered into with RBS on 2 April 2012. This will reduce the total acquisition cost of RBS' Asia Pacific Cash Equities and M&A advisory business to RM781m from RM849m previously.
OUR TAKE
Slight setback. We view the exclusion as a slight setback. As depicted in Figure 1 below, RBS' business in India was one of the countries with the least duplication with CIMB excluding RBS' regional presence. Outside Asean, where CIMB's core strength naturally lies, RBS India is also the second strongest market after Australia within RBS' ex-ASEAN cash equities and M&A portfolio, ranking top 10 in terms of mergers and advisory market share.
Taking the longer route. Nevertheless, given the group's enlarged presence in other markets, we believe that it has built up sufficient regional franchise value to expand into India on its own via the application of new licences and rebuilding efforts, similar to its strategy in South Korea.Maintain BUY. We are maintaining our BUY recommendation and leaving our FV unchanged at RM8.53 (2.3x P/BV, 16.7% ROE) as the impact of excluding RBS' India business is relatively small vis-''-vis the group's overall earnings and asset base.
Source: OSK
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
2024-11-24
CIMB2024-11-22
CIMB2024-11-22
CIMB2024-11-21
CIMB2024-11-21
CIMB2024-11-21
CIMB2024-11-20
CIMB2024-11-20
CIMB2024-11-20
CIMB2024-11-19
CIMB2024-11-19
CIMB2024-11-19
CIMB2024-11-19
CIMB2024-11-19
CIMB2024-11-19
CIMB2024-11-18
CIMB2024-11-18
CIMB2024-11-18
CIMB2024-11-15
CIMB2024-11-15
CIMB2024-11-15
CIMB2024-11-15
CIMB2024-11-15
CIMB2024-11-13
CIMB2024-11-13
CIMB2024-11-13
CIMB2024-11-13
CIMB2024-11-13
CIMB2024-11-12
CIMB2024-11-12
CIMBMore articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City
Created by kiasutrader | Mar 29, 2018
Kenanga Research - On our Portfolio - Parliament dissolution around the corner?
Created by kiasutrader | Mar 25, 2013
Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT
Created by kiasutrader | Mar 25, 2013
Pavilion Reit - Limited upside, earnings upside have been priced in HOLD
Created by kiasutrader | Mar 25, 2013
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Latest Videos
Apps
Top Articles
1
2
4
5
save malaysia!
Visa-free travel to China extended for Malaysians to 30 days
6
7
BFM Podcast
8
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
