Maybank pulls out of RHB bid

Maybank pulled out of negotiations for the purchase of RHB Capital because of the prohibitive price.

Maybank President and Chief Executive Officer Datuk Seri Abdul Wahid Omar said that the RM10.80 per share in RHB Capital "will not have been value creating for Maybank shareholders," reports bernama.

This was the price paid by Aabar Investments for Abu Dhabi Commercial Bank's 25 per cent stake in RHB Cap.

Asked whether the high price of RM10.80 per share was the stumbling block for the merger, he said: "When we announced the possible merger, we believed the transaction would, if executed properly, be creating value for our shareholders.

"Having said that, there were recent developments, which created certain expectation in terms of valuation and we believe that valuation will be very difficult to create for our shareholders".

Wahid said at this juncture, the bank would continue to focus on organic growth activities but was also open, at the same time, to any transaction opportunity.

"Maybank is progressing well. We have reported our third quarter results and have generated RM3.3 billion in profits for the nine-month period. We are on track for further improvement," he added.