Malaysia's RHB Capital Bhd. plans to take over OSK Holdings Bhd.'s financial-services arm in a deal worth up to $605 million that would make RHB the country's largest brokerage by market share---Wall Street Journal
RHB Cap expects nod for OSK merger in Q2 RHB Capital Bhd which has submitted an application for Bank Negara's approval for a proposed merger with OSK Holdings Bhd, hopes to get the nod by the early second quarter of this year, RHB Bank Bhd deputy managing director, Renzo Viegas said.
Both parties had submitted the application on Jan 11 to seek approval from the Minister of Finance via Bank Negara for the possible merger of businesses of OSK Investment banking group and RHB banking group.
"We will utilise regional branches of OSK for commercial banking if the merger kicks off," Viegas said at the launch of the RHB "Now Race For A Ducati" campaign.
HwangDBS Vickers Research had said the merger would enable RHB Cap to tap into OSK's entrenched retail channel -750 remisiers and dealers- to distribute equity and debt offerings, while grabbing a niche position in the capital markets.
The potential merger of RHB Cap and OSK Investment Bank Bhd will create the largest stockbroker in Malaysia. At midday, both RHB Capital rose three sen to RM7.33 and OSK Holdings inched up one sen to RM1.80. -- BERNAMA
http://bonescythe.blogspot.com/ RHB and OSK breaking apart ler..... one thing I don't get it, why would it break now and not before since the negotiation has been going on for at least 6 months. Why RHB didn't notice the huge debt level OSK had when they are doing the due diligence.... and why only now talking about breaking???
Waste of time ........... better to put it into Saving account than OSK , between OSK and infamous RaymondChan ..... same catergory !!!!!!!!!!!!!!!!!!!!
osk fundamental weak or strong, bottomline is RHB is still buying the OSKIB. The fact is mr ong will not let go of it so easily without getting a big check out from RHB...
TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) NON RELATED PARTY TRANSACTIONS
Description
:
OSK HOLDINGS BERHAD (“OSKH” OR THE “COMPANY”)
PROPOSED DISPOSAL BY OSKH TO RHB CAPITAL BERHAD (“RHBC”) OF THE FOLLOWING ENTITIES :-
(I) 100% EQUITY INTEREST IN OSK INVESTMENT BANK BERHAD (“OSKIB”);
(II) 20% EQUITY INTEREST IN OSK TRUSTEES BERHAD (“OSKTB”);
(III) 20% EQUITY INTEREST IN MALAYSIAN TRUSTEES BERHAD (“MTB”); AND
(IV) 100% EQUITY INTEREST IN OSK INVESTMENT BANK (LABUAN) LIMITED (“OSKL”),
FOR A TOTAL DISPOSAL CONSIDERATION of RM1,977.50 MILLION TO BE SATISFIED THROUGH THE ISSUANCE OF 245.0 MILLION NEW ORDINARY SHARES OF RM1.00 EACH IN RHBC (“RHBC SHARE(S)”) AT AN ISSUE PRICE OF RM7.36 PER RHBC SHARE AND RM174.3 MILLION IN CASH (“PROPOSED DISPOSAL”); AND THE SUBSEQUENT MERGER OF THE INVESTMENT BANKING BUSINESSES OF OSKH AND RHBC (“PROPOSED MERGER”)
(COLLECTIVELY REFERRED TO AS THE “PROPOSALS”)
Attachments
:
OSKH - Announcement (28 May 2012).pdf OSKH - Announcement (Appendices) (28 May 2012).pdf
Announcement Details/Table Section :
We refer to the announcements made by the Company on 29 September 2011, 14 October 2011, 11 January 2012, 27 April 2012 and 24 May 2012 in relation to the Proposals.
On behalf of the Board of Directors of OSKH, OSKIB wishes to announce that the Company had on 28 May 2012, entered into a conditional share purchase agreement with RHBC in relation to the Proposed Disposal.
Further details on the Proposals are set out in the attachments enclosed herewith.
i read the report from bursamalaysia and copy and paste the excerpt here. If my calculation is correct, OSKH shall be valued at 1.54 + 0.9078 = 2.4478 after the disposal based on NA value of 1.54 today.
7.3 Earnings and earnings per share As part of the Proposed Disposal, the investment banking business of OSKH will be disposed off and the current operations will be continued in the enlarged RHBC group. The gain or loss arising from the Proposed Disposal will depend on the NA of the OSKIB Group at the time of completion of the Proposed Disposal and the expenses/costs incurred in connection with the Proposed Disposal. For illustrative purposes only, based on the latest audited consolidated financial statements of OSKH as at 31 December 2011 and on the assumption that the Proposed Disposal had been effected on that date, the OSKH group expects to realise a gain on disposal (after deducting the estimated expenses to be incurred for the Proposed Disposal) of approximately RM853.32 million. This translates to a proforma non-recurring gain on disposal per ordinary share of RM1.00 each in OSKH of approximately 90.78 sen (based on number of shares in issue as at 31 December 2011).
If you read the attachments carefully, there is NO capital repayment to distribute the RHB shares & cash received, they are going to keep the listing status of OSK & looking to acquire new business. This is only good for major shareholders. What in it for small shareholders like us? NOTHING!
relax..look at it the positive way, it is merged and become a larger entity. OSK Holdings hold 10% of RHB cap share which is undervalued. Also after the stake dispose, the NA value become 2.44...
Please do not speculate the unscupulous romour. I am sure that OSK-RHBCAP understood well the law of Economic Torts, unless they want to be sued for negligent misstatement; damage for pure economic loss caused by detrimental relience on the statement. Then, we are the victim. We shall wait for OSK move, we shall see what is their action, then we make decision by then.
exactly, I think the price paid is quite decent and beneficial to OSK. Beside, from the business stand point it does make a lot of sense being big with a lot of financial power to survive.
Guys, is this really a bad deal for OSK Holdings (and us investors/speculators)? RHB is buying the stock-broking division by paying with RHB shares plus some cash. That means OSK Holdings will have fluid shares that are of high value plus money... but no business.
The question is, if there won't be any capital repayment, what is OSK Holdings going to do with the shares and money? This sounds something like Kurnia Asia, which sold the local insurance business to AMMB (or is it Am Bank?). Or is OSK Holdings just going to sit around `goyang kaki' to receive dividends from its RHB shares?...plus sell (like us traders) from time to time when the price goes up? If there is good income from that, I say why not?
I think there is potential but I am worry about the pn 17. That will means investor will dump the share because there's no value to the stock anymore to the bank.
OSK also received cash from the sale. Might there be the possibility it would use that to pay out a special dividend of some sort to appease the minority shareholders?
OSK better be realistic to sustain in nowadays market scenario. Too much political involve will make OSK jahanam. Ref: The Star today. Better be real OSK. Public has brain, not just kakitangan.
5th Last paragraph: "Ong also said OSK would remain a listed entity after the disposal of OSK IB, but stayed mum on its future direction. He added that OSK was not considering a capital repayment to its shareholders for now."
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 583 views | 3 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 13176 views | 12 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
bell
31 posts
Posted by bell > 2012-01-19 15:42 | Report Abuse
will osk up??