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Monday, 14 July 2014

RHB Cap, CIMB, MBSB plan to form mega Islamic bank

They announced in a joint statement on Thursday that under the corporate exercise, the proposal was to merge the businesses of both RHB and CIMB.
The corporate exercise included plans to create an enlarged Islamic banking franchise with MBSB.
“Following this, the three parties have entered into a 90-day exclusivity agreement to negotiate and finalise pricing, structure, and other relevant terms and conditions for a proposed merger of the three entities and the creation of a mega Islamic bank.
“The exclusivity agreement comes with an automatic extension provision upon submission to BNM on the proposal,” they said.
RHB Capital group managing director Kellee Kam: "We believe that there is inherent value and that there will be many opportunities which will arise from this proposed merger. We hope to explore this further through our discussions.”
Group chief executive of CIMB Group, Datuk Seri Nazir Razak said: "There is a prima facie case for a value-creating merger between the three entities and we want to get into detailed discussions to validate it."
MBSB president and CEO Datuk Ahmad Zaini Othman, commenting on the prospects of the creation of a mega Islamic bank, said: "The opportunity to be a part of a mega Islamic bank is exciting for us and we want to take this forward."
Trading in the securities of CIMB Group, RHB Capital and MBSB shares will resume on Friday.
StarBiz reported the three banks would write to BNM to seek permission to commence a corporate exercise which will result in a mega bank that will have a market capitalisation of more than RM90bil, assuming the deal is concluded at about 1.70 to 1.75 times book value.
"The deal is likely to be done at 1.75 times book value based on CIMB's current valuation of almost 1.70 times book. It is unlikely to be transacted at anything less," said a source.
At 1.75 times book value, RHB Cap would have a market capitalisation of about RM30bil, while MBSB's total capitalisation would be about RM6.8bil.
(The Star Online / 10 July 2014)
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Ahmed Advocates Zakat To Fight Poverty

Kwara State Governor, Alhaji Abdulfatah Ahmed has advocated the entrenchment of Zakat, a system of wealth redistribution, to fight poverty in the land.
“If all mankind imbibes the spirit of Zakat, there would be no poverty in the land. It is not about Islam, it is about a system of wealth redistribution. We must imbibe it so that people can get the benefits of life”, he said.
Ahmed spoke at the 8th Lai Mohammed Ramadan lecture organised by the National Publicity Secretary of All Progressives Congress (APC), Alhaji Lai Mohammed in his Oro Irepodun Local Government country home. 
The governor also tasked political leaders in the country to lead with piety and humility by recognising that power and sovereignty belongs to Almighty God.
He said: “Power and sovereignty belong to Allah. He gives it to whom he wills and he takes from whom he wills. 
“If he gives it to you, you must use it with piety and humility and most importantly, we must be seen to be givers. Charity is very important. And Zakat which is what we call wealth redistribution, Allah has created life as a life of equilibrium. It is not by accident that he has made some rich and some poor but he has given us a redistribution mechanism so that we can always take from the rich and get to the poor and that is Zakat”.
Chief Imam of Offa, Sheikh Muideen Hussein in his lecture urged political leaders to serve with fear of Allah and address the problem of hunger in the country. He also called on the people of the state to rally round the APC government to succeed.

(Daily Times Nigeria / 13 July 2014)
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