RHB targets July completion of deal with Bank Mestika

The Malaysian lender seeks pending regulatory approval from Indonesia as Bank Negara Malaysia has already approved the deal last January.

RHB Banking Group, the country's fourth largest bank by assets, aims to finally seal the deal for Indonesia's PT Bank Mestika Dharma in July, after numerous rounds of delays.

The group's listed entity, via RHB Capital Bhd (RHBCap), first announced plans to buy 80 per cent of Bank Mestika for some RM1.16 billion ($382.89 million) in October 2009. However, the plan ran into delays due to queries from the Indonesian central bank relating to disclosure as well as structure of the banking group. Since then, changes have been made, with RHB Bank, which is an entity of RHBCap, now being proposed as the party to undertake the purchase.

"We received Bank Negara Malaysia's approval in January, while the rights issue of RM1.3 billion ($429.1 million) for the acquisition of Bank Mestika has been approved by the Securities Commission and shareholders.

"What's pending is regulatory approval from Indonesia, that could take a few months, so we are looking at July-ish," said RHBCap principal officer Kellee Kam Chee Kong after the company's annual general meeting in Kuala Lumpur on Wednesday.

View the full story in The Business Times.