KUALA LUMPUR: AMMB Holdings Bhd and RHB Bank Bhd are expected to announce news on their negotiations for a possible merger on Tuesday.
This follows their request for trading in their securities to be suspended with effect from 9 am Tuesday.
AMMB Holdings group chief executive officer Datuk Sulaiman Tahir has said that both itself and RHB Bank would submit to the authorities on whether or not to proceed with their merger by the end of August or beginning September.
Bank Negara had, vide its letter dated June 1, stated that it had no objection for the two banking groups to begin negotiations for a possible merger of their businesses and undertakings.
The central bank’s approval is valid until Nov 30, but both parties have signed an exclusivity agreement expiring Aug 30 to negotiate and finalize the terms and conditions of the proposed merger.
RHB is currently the country’s fourth-largest lender, while AMMB is the sixth largest based on asset size.
RHB Bank’s biggest shareholder is the Employees Provident Fund (40.70%), which is also a substantial shareholder in AMMB (9.54%).
RHB shares closed 7 sen lower at RM4.88 on Monday (458,200 shares traded) while AMMB shares remained unchanged at RM4.70 (4.14 million shares traded).