OSK-RHB merger set for completion by Q1 2013

The merger between OSK Holdings Bhd's investment banking arm and RHB Capital Bhd is expected to be completed by the first quarter of 2013.

OSK Holdings will enjoy the benefits of RHB Capital's strong balance sheet, in exchange for OSK Holdings' good  regional coverage.

OSK director Tan Sri Ong Leong Huat said yesterday that approvals were still needed from Indonesia, Hong Kong and Singapore jurisdictions. Meanwhile, approvals from Malaysia, Cambodia and Thailand had already been received.

“There is no definite date, but we think it will be within the next one month,” he said in regard to the approvals after OSK Holdings' extraordinary general meeting.

The group's immediate plans are to help and support the integration of the two entities.

“In order to do that, it is important that we must participate in bringing synergy and in bringing more businesses, which will bring more profits,” he said.

Ong said because both businesses complimented each other, there was little overlap between the two banks.

“There will be no retrenchment from the merger as there is minimal overlapping.

“Management will also be integrated and the business will be run as one entity,” he said.

The total RM208.5mil in cash that OSK Holdings will receive will be utilised for merger exercise expenses and working capital for the group's remaining businesses.

OSK had disposed to RHB Capital its 100% equity interest in OSK Investment Bank Bhd, 20% in OSK Trustees Bhd, 20% in Malaysian Trustees Bhd and 100% in OSK Investment Bank (Labuan) Ltd.

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