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MARKETS | Staff Reporter, Malaysia
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RHB may pay up to $514m for OSK unit

The banking group may issue new shares equivalent to as much as 10% of its existing equity to pay for the unit.

RHB Capital Bhd., Malaysia’s fifth- biggest banking group, may issue stock to pay for OSK Holdings Bhd.’s investment bank, three people with knowledge of the matter said to Bloomberg.

RHB may issue new shares equivalent to as much as 10 percent of its existing equity to pay for the unit, said the people, who declined to be identified as talks are private. That would value the transaction at as much as 1.63 billion ringgit ($514 million), based on RHB’s Nov. 18 closing price.

Buying OSK Investment Bank Bhd. would allow RHB to overtake CIMB Investment Bank Bhd. as the biggest stockbroker in Malaysia, based on data from the country’s exchange.

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