I like your viewpoint.

Is the EPF disposal meant to engineer some vested market reaction?

Support your optimism.

Circular to shareholders, p.7
4.5 Adjustment to the market price of Alcom Shares
There will be an adjustment to the market price of Alcom Shares listed and quoted on the Main
Market of Bursa Securities pursuant to the Proposed Capital Repayment.
For illustration purposes and based on the closing market price of Alcom Shares as at the LPD of RM1.40, the market price of Alcom Shares will be adjusted to RM1.195 pursuant to the Proposed Special Dividend, and further adjusted to RM0.875 pursuant to the Proposed Capital Repayment.

zoomsbooms, the price will drop after capital repayment and dividend payments for adjustments of used cash in such payments.

Fully agreed with stockraider.

I think there will be exciting price movement once the EGM is fixed followed by shareholders approval.

Monday, ...More momentum?

Oops.

Whoa, whoa, whoa. Momentum play today ALCOM high 1.61. Tomorrow more momentum play, can go higher?

ahdi, ?? % possibility of your hypothesis (OSK@RM2.0)?

Kenanga is NEUTRAL as talk just begins ....

It looks like the proposed "share swap" in the merger does not appeal to investors. CASH IS STILL KING.

RHB to buy AMMB’s assets and liabilities in all-share deal
Joyce Goh & Adeline Paul Raj

The Edge Financial Daily

June 02, 2017 07:38 am MYT
This article first appeared in The Edge Financial Daily, on June 2, 2017.

PETALING JAYA: RHB Bank Bhd and AMMB Holdings Bhd’s merger plan involves RHB buying all of the latter’s assets and liabilities in an all-share deal. RHB told analysts that it hoped to do the deal at one-time book value (BV).

RHB group managing director and chief executive officer (CEO) Datuk Khairussaleh Ramli, in an analyst briefing yesterday, said it would be issuing shares for AMMB’s assets and liabilities, and stressed that there would be no cash involved.

This throws up questions as to how AMMB’s largest shareholder Australia and New Zealand Banking Group Ltd (ANZ), which has been looking to sell its 23.78% stake, will exit. ANZ said last November that it planned to sell its stake over the next 12 to 18 month.

An industry observer noted that as much as ANZ would likely want a cash exit, it would be too costly for RHB. “Both banks are trading just under one-time book value now, so if a share deal happens at book value, ANZ and any other shareholder could exit at a later date,” the observer opined.

Khairussaleh told analysts that this was the right time for the two banks to go into a merger, particularly because both are trading at close to their BVs. “So, if we can do it at book, that will be great. We minimise goodwill to optimise the financial outcome,” he said.

An all-share deal would be less dilutive, according to a banking analyst who attended RHB’s briefing. “They expect to overcome dilution in two to three years,” he said.

In a report yesterday, DBS Group Research noted that in May last year, ANZ wrote down its investment in AMMB to 0.9 times BV, which fuelled speculation that ANZ might be willing to relinquish its stake for as low as one-time BV.

Sources said there is a strong possibility that the Employees Provident Fund (EPF), which is the common shareholder in both banks, will end up being the biggest shareholder of the merged entity. It currently has a 40.7% stake in RHB and 9.91% in AMMB.

RHB and AMMB, in separate stock exchange filings yesterday, said they had obtained Bank Negara Malaysia’s approval, which is valid until Nov 30, to start discussions for a possible merger of their “business and undertakings”.

This confirms a report in the The Edge Malaysia weekly’s March 20 issue that cited sources as saying that the two were exploring a merger and that there had been preliminary talks among some of their key shareholders.

The two banks have now entered into a three-month exclusivity agreement, which expires on Aug 30, to negotiate and finalise the pricing, structure, and other terms and conditions. They said there could be an automatic extension of the exclusivity period, if needed.

“It is envisioned that the transaction will effectively be an all-share merger,” they said in a joint press statement yesterday.

In the statement, Khairussaleh said: “We are confident that if the proposed merger takes place, it will create greater synergy for the enlarged banking group, benefiting our shareholders, customers, employees and all other stakeholders.”

He told analysts that the merger would make the group No 1 in asset management, general insurance and equities broking, and No 2 in Islamic banking. It would also make it the 9th largest bank by assets in Asean, creating a bigger platform for it to grow further at home and regionally.

In an email to staff yesterday, Khairussaleh stressed that it would be business as usual at RHB. “To be able to compete effectively in the banking industry, and provide the platform for future growth, we believe that having scale to our business is key. A merger will help accelerate this objective,” he said. Should the discussions lead to a merger, he assured the staff that the group would take the necessary steps to ensure a smooth integration of RHB’s business and operations with that of AMMB.

At a town hall meeting with senior staff, he said that if all went well, the parties hoped to get the deal completed within a year.

Meanwhile, AMMB, in its town hall with senior staff, said it would be good for the group to move up in the size rankings. RHB and AMMB combined would have total assets of RM365.88 billion, only slightly behind the third largest banking group Public Bank Bhd’s RM380.05 billion. AMMB, on its own, is the sixth largest.

“This new chapter that is opening in the AmBank Group’s history, comes at an opportune time for us as we have been moving closer to achieving our Top 4 goals. I am positive that the proposed merger with RHB will create a stronger business and financial presence. Our combined strength in key business segments, particularly in retail and investment banking, will bode well for us as we move forward to achieve our goal of becoming a formidable banking group,” its group CEO Datuk Sulaiman Mohd Tahir said ...

Will AMMB and RHB counters bang, bang, bang today? Let's see ....

Will AMMB and RHB counters bang, bang, bang today? Let's see ....

But, the present contrarian market sentiment may show otherwise.

It's 20.5 sen

Insider_Says:
Thank you very much for your meticulous initiative to list out the fundamental forensics of RCECAP.

I'm sure with this segmental analysis, it's as clear as daylight as to the strength and depth of RCECAP business model, its future loan growth, its impairment risks, its financial liabilities and cash flow.

Complementing the relevant segmental fundamentals, an efficient and prudent management supported by a confluence of value-enhancing factors have further enabled RCECAP to outperform progressively.The supportive factors are:
1. Higher fee income
2. Macro debt market demand
3. Better quality loans
4. Employing CCRIS system
5. Stringent loan application criteria
6. Cutting management costs
7. Efficient and speedy loan processing procedures

Yes, you are right, ginvin. Tan Sri Dato' Azman Has him has substantial shareholding in RCECAP.

Tomorrow will witness some interesting drama in AMMB, RHB & OSK counters.

Well, what are we waiting for? Get the tickets, buy the drinks and popcorn and get ready to enjoy a Made-in-Malaysia Bollywood Hindustani movie. Ha, ha, ha. JJchan, have you booked your tickets?

The present reality is there are about 20 financial institutions providing financing lending services to government servants. RCECAP has only about 1% portion of this money-lending service provisions. Yet, RCECAP is able to achieve an increasingly strong performance.

Significant price movement today. Hope momentum is kept steady tomorrow.

Excerpt from Reuters
In a research note ahead of the merger announcement, UOB Kay Hian analyst Keith Wee Teck Keong said RHB's shares are likely to react negatively to the announcement as the revenue synergies between the two groups are not compelling.

"We opine that such a merger would require a fair degree of cost rationalization given the degree of operational and revenue duplication between AMMB and RHB," he said.

In a research note ahead of the merger announcement, UOB Kay Hian analyst Keith Wee Teck Keong said RHB's shares are likely to react negatively to the announcement as the revenue synergies between the two groups are not compelling.

"We opine that such a merger would require a fair degree of cost rationalization given the degree of operational and revenue duplication between AMMB and RHB," he said.

On the AmBank-RHB saga, investors have sought views among remisiers'/analysts circles on the prospects of a successful merger talk. It is opined that the outcome of a successful merger is a remote possibility. It is because there aren't any distinct incentives or advantages for both.

Perhaps this excerpt from Reuters can help to shed some light.

In a research note ahead of the merger announcement, UOB Kay Hian analyst Keith Wee Teck Keong said RHB's shares are likely to react negatively to the announcement as the revenue synergies between the two groups are not compelling.

"We opine that such a merger would require a fair degree of cost rationalization given the degree of operational and revenue duplication between AMMB and RHB," he said.

JJchan, 1 FB LIKE to you. Amazed following your exciting corporate banking chronicles which have appeals like Hollywood and Bollywood. Ha, ha, ha.

Thanks boon1515 for update.

Salient point:
The exclusivity agreement will expire on 30 August 2017. It is envisaged that the transaction will effectively be an all shares merger.

How does OSK significantly benefit from its 10.13% holdings of RHB shares? Food for thought.

Maybe some reserving their power for an onslaught on AmBank and RHB counters tomorrow.

People probably succumbed to indigestion as a result of too much consumption of dumplings.

From the STAR today
Thursday, 1 June 2017
RHB-AMMB to begin merger talks
BY GURMEET KAURandINTAN FARHANA ZAINUL

http://www.thestar.com.my/business/business-news/2017/06/01/rhbammb-to-begin-merger-talks/

Extract Highlights

# If the deal materialises, then the merged entity would end up becoming the country’s fourth-largest bank by asset size.

# RHB is likely to be the acquiring bank, making an offer to the shareholders of AMMB that may involve cash and shares.

# AMMB’s major owner is Australia and New Zealand Banking Group Ltd (ANZ) of Australia with a 23.78% stake, while its second-largest shareholder is founder Tan Sri Azman Hashim, who has an effective stake of 12.97%.

# RHB, meanwhile, is 41%-owned by the Employees Provident Fund (EPF).

# Both banks have a common shareholder in the EPF, with the pension fund also holding a 10.04% stake in AMMB, according to Bloomberg data.

# The other substantial shareholders of RHB are Aabar Investments PJS with a 17.75% stake and OSK Holdings Bhd with 10.13%.

Read more at http://www.thestar.com.my/business/business-news/2017/06/01/rhbammb-to-begin-merger-talks/#ZVhjkXwqq7guU00H.99

EPF plays a pivotal game changing role in this AmBank-RHB M & A as it has dual interests in both corporate entities as well as the leverage of an enormous reservoir of cash assets at its disposal. MONEY SPEAKS, LOUD AND CLEAR.

Luckyeveryday, yes, OSK counter is 5053

Whoa, so juicy deal.

It's still CASH IS KING.

cocqueen, a 'queenie' strategy.

Good morning. Anything the matter?

TheContrarian, so early here.

chkhooju, yes. With AmBank & RHB under suspension today, OSK a good proxy to leverage the windfall.

I think OSK, holding substantial shares in RHB, is a strategic proxy to benefit from the proposed AmBank-RHB merger. Yesterday's close @ 1.66 is attractively appetizing!
Waiting to see what drama unfolds today when Bursa opens.

Current focus on small and midcaps, got budget from Securities Commission, Government, etc

Such humility, such humility.

ahhuat02, thanks for conducting the interview. In my view, insider_says is like what Alibaba Jack Ma's popular quotation "a crocodile in the Yangtze River." Ha ha.

A case of 2 big elephants, the Kancil (OSK) wins?

See you at MAA forum. More appropriate. Earlier comments spontaneous & incidental.

TheContrarian, I'm retiring about 18 months from now. Will be joining your club soon. Ha, ha. Anything brewing at Insas?

MAA Directors are having comfortable life without much work but good pay.
They seem to be dragging their feet on Bursa compliance issue.

TheContrarian, great gift of news today. No wonder I saw a sudden surge of volume about 751,700 @ 1.66 about 4.40 p.m. I was monitoring my portfolio intensely at my trading dashboard since 4.00 p.m.
Merger announcement confirmed by Bursa.

Remember the old times forum members flashed out the Disruptor at MAA with negative comments. Remember how the Disruptor suddenly deleted his account and all traces when exposed?