Jan 16 2007
In a financial breaking news today, Malaysian Utama Banking Group Berhad (KLSE : UBG, stock-code 6831) agreed to sell its’ 32.5% stake in Rashid Hussain Berhad (KLSE : RHB, stock-code 1309) to Kuwait Finance House ( KFH ) – confirming my suspicious when I blogged “Consider RHB SOLD to KFH“.
Meanwhile TheEdge reported the stake involved in the sale comprises 238.12 million shares, eight million RHB warrants 2001/2007, 92.46 million call warrants 2003/2007, 449.2 million RHB irredeemable convertible unsecured 
loan stocks (ICULS) A and 403.47 million ICULS-B.
loan stocks (ICULS) A and 403.47 million ICULS-B. The stocks of RHB and UTAMA were suspended, but I’m surprise that RHB Capital (KLSE : RHBCAP, stock-code 1066) and its’ related call-warrants were allowed to be trade thereafter. With this uncertainties cleared, RHB should start shifting its’ gear towards a better future (RHB was like a ship without a capable captain who can set a clear direction since the departure of Tan Sri Rashid Hussain) both for its’ employees (most of the best employees have since left when their perks were slashed due to poor performance) as well as shareholders (shouldn’t you pity those minority shareholders who bought into RHB shares during its’ peak when the stock price was more than RM 16.00 per share?).
However Utama indicated the agreement with the Kuwaiti investment bank was not exclusive, saying it still wanted to talk to a rival suitor for the stake, financial group Primus Pacific Partners – a consortium consists of Fubon Financial Holding (TPE : 2881), Qatar Investment Authority and Kuwait Investment Authority.
It’s yet to be seen the price agreed by both parties and what are the long-term plans set by KFH for the ailing RHB. To be favored by investors, it can’t only survive purely on Islamic Banking – it need to think globally in order to compete with giants such as CitiGroup Inc (NYSE : C). Talk about karma, the name RHB will soon disappear from the banking map forever the same way RHB erased its’ previous prey such as Kwong Yik Bank, DCB Bank and Sime Bank.
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January 16th, 2007 by financetwitter
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What happen in the future for share and warrant holders, since the counters suspended