Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Reports: RBS Close To Selling Asian Equities Arm To Malaysia's CIMB Group

British financial services provider Royal Bank of Scotland Group Plc (RBS: Quote,RBS.L) is close to selling its Asian equities arm to Malaysia's CIMB Group Holdings Bhd., according to media reports on Sunday. The deal is expected to be finalized as early as this week.

The proposed sale includes the cash equities, equity capital markets and corporate finance businesses of RBS in the Asia Pacific across Hong Kong, Australia, Taiwan, Thailand and India.

The deal is part of RBS's efforts announced in early January on strategic and organizational changes in its investment banking/wholesale business, while it will help CIMB become a major player in Asia.

CIMB had signed a Memorandum of Understanding with RBS on March 1 to negotiate exclusively with each other and finalize the scope and terms of a sale and purchase agreement. The deal remains subject to regulatory approval.

RBS has been in the process of shedding its non-core operations to pay back the public funds it received in the form of a government bailout during the financial crisis in late 2008.

The strategic plan to sell off its non-core operations was announced in February 2009. RBS, which is 84 percent owned by the UK government, had received GBP 45.5 billion pounds of government funding during the global financial crisis.

The government bailed out Edinburgh-based Scotland-based RBS about three years ago after the lender was driven to the verge of collapse by its purchase of ABN Amro. The UK has been discussing the sale with Abu Dhabi sovereign wealth funds for the past few months on diluting their stake in RBS.

Kuala Lumpur-based CIMB Group Holdings Berhad, formerly known as Bumiputra-Commerce Holdings Berhad, is the holding company and listed vehicle for CIMB Group. CIMB Group is Malaysia's 2nd largest financial services provider by assets and one of the region's leading universal banking groups. The Group has the region's widest retail branch network with over 1,000 branches in 8 out of 10 ASEAN nations, and is the region's largest indigenous investment bank.

RBS closed Friday's regular trading session at $8.84, down $0.06 or 0.67% on a volume of o.47 million shares. On the London Stock Exchange, RBS.L closed at 27.64 pence, down 0.19 pence or 0.68% on a volume of 98.25 million shares.

Register
To receive FREE breaking news email alerts for Royal Bank of Scotland Group PLC and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
After moving modestly higher in morning trading, stocks showed a substantial move to the downside over the course of the trading day on Wednesday. The major averages pulled back well off their highs for the session, sliding firmly into negative territory. Ebola "czar" Ron Kain is scheduled to meet with President Barack Obama on Wednesday as he begins his efforts to coordinate the government's response to the deadly disease. Klain, who previously served as chief of staff to Vice President Joe Biden and then-Vice President Al Gore, was named as Ebola Response Coordinator last Friday. Potentially complicating the outlook for control of the Senate, the results of a SurveyUSA poll conducted for WXIA-TV in Atlanta suggest that the Georgia Senate race between Republican David Perdue and Democrat Michelle Nunn could be headed for a runoff.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.