The chief executive of Malaysia's second larget lender CIMB Group Nazir Razak said its potential takeover of smaller rival RHB Capital must be a "value creating merger", and the question of price was "not relevant", according to a report by local wire Bernama.
CIMB is presently competing with the Southeast Asian country's largest bank, Malayan Banking (Maybank) , to merge with RHB, which will create one of the largest financial groups in Southeast Asia.
"We are in discussion with RHB as to whether such a merger can happen," Nazir was quoted as saying. "CIMB is looking to negotiate a value creating merger...so the price is not relevant."
A new major shareholder in RHB emerged last Friday after Abu Dhabi Commercial Bank signed the sale agreement of its 25 percent stake in RHB with Abu Dhabi-based investment fund Aabar Investments for 10.80 ringgit ($3.56) per share.
Nazir said CIMB would engage with Aabar regarding a merger, adding that there was "no point in negotiating a deal unless you can get support of the shareholders."
Shares of RHB had fallen 1.5 percent to 9.60 ringgit per share as at 0805 GMT.
CIMB is presently competing with the Southeast Asian country's largest bank, Malayan Banking (Maybank) , to merge with RHB, which will create one of the largest financial groups in Southeast Asia.
"We are in discussion with RHB as to whether such a merger can happen," Nazir was quoted as saying. "CIMB is looking to negotiate a value creating merger...so the price is not relevant."
Nazir said CIMB would engage with Aabar regarding a merger, adding that there was "no point in negotiating a deal unless you can get support of the shareholders."
Shares of RHB had fallen 1.5 percent to 9.60 ringgit per share as at 0805 GMT.
