Malaysia’s CIMB Group Holdings and RHB Capital are mulling revision of terms of their proposed $12.9bn merger.
The move is being considered as market values of the two banking entities have dropped since the announcement of the deal in October last year.
CIMB shares have slumped 24% in this period which may make the deal unattractive for RHBCap investors. RHB shares too have dropped 14% during the same period.
The entities may therefore, have to renegotiate terms of the proposed three way merger with Malaysia Building Society, that is slated to create Malaysia’s largest ever banking group by total assets.
Revising merger terms and convincing other investors of the deal’s advantages has become more important as RHB’s largest shareholder, Employees Provident Fund, has been exempted from voting on the deal by a ruling of Malaysian stock exchange.