KUALA LUMPUR, Oct 16 — Malaysia’s fourth-biggest lender, RHB Capital, will buy a controlling stake in a small Indonesian bank, a source familiar with the issue said today, as it chases rivals who have moved into Southeast Asia’s largest economy.
Trading in RHB Capital shares was suspended today. A company spokeswoman said RHB Capital would make an announcement on Monday, but declined to elaborate.
RHB will buy into an Indonesian lender operating in the consumer segment of the market, said the source, who asked not to be identified because of the sensitivity of the matter.
“It’s a smallish bank and it’s probably a niche market,” said the source. “The group wants to expand. Indonesia has a population of 250 million and is the largest market in Southeast Asia.”
RHB would tap the market for funds to finance the deal, the source added.
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RHB, controlled by the Employees Provident Fund, has lagged its rivals in entering Indonesia.
Last year, top lender Maybank paid US$2.7 billion (RM9.18 billion) for sixth-ranked Bank Internasional Indonesia, as growth at home slows with rising competition in a nation of 27 million people.
Malaysia’s second-ranked CIMB controls Jakarta-listed Bank CIMB Niaga, which was formed from a 2008 merger of Bank Niaga and Bank Lippo.
RHB Capital shares last traded up 4.6 per cent at RM5.69. The stock has gained 46 per cent this year, lagging the sector index’s 56 per cent rise. — Reuters
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