Thursday, February 08, 2007

New bidder approved for RHB

The Malaysian central bank, Bank Negara Malaysia, has allowed EON Capital to sumbit a rival bid for the 32% stake in Rashid Hussain Bhd (RHB), currently held by Utama Banking Group Bhd. The current leading offer is from Kuwait Finance House, which bid RM2.16 billion and promised to inject RM12 billion in capital into the indebted company. EON Capital has not yet made an offer. However, KFH and Utama have set February 16 as the deadline for making an agreement. Primus Pacific Partners has also been approved to make a bid, but has not submitted one.

Standard & Poor's announced that the offers will not have an impact on ratings or outlook of RHB but the ratings agency will monitor RHB and reassess if control of the company changes or it is restructured.

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