DATUK SERI MOHAMED AZIR ABDUL RAZAK
Datuk Seri Mohamed Nazir Abdul Razak
It involves CIMB paying RM431.8 million to RBS for the operations and injecting another RM417.6 million of new capital into various operating entities.
CIMB Group Holdings Bhd, the country’s second largest bank by assets, is acquiring most of Royal Bank of Scotland’s (RBS) cash equities and associated investment banking business in Asia Pacific for RM849.4 million.The deal will see CIMB emerging as the largest investment banking franchise based in Asia Pacific excluding Japan.It involves CIMB paying RM431.8 million to RBS for the operations and injecting another RM417.6 million of new capital into various operating entities.“This is an excellent opportunity to complete the build-up of our capabilities in Asia Pacific markets and to do it quicker and less expensive than if we grew organically,” CIMB group chief executive officer Datuk Seri Nazir Razak said.
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The acquisition, pending regulatory approvals, will give the group new onshore presence in Taiwan and Australia as well as bigger presence in Hong Kong, India and China."Our research will cover 1,093 Asia Pacific-based companies and we will see a big increase in global institutional investor relationships," he added.Nazir said CIMB's aspiration to be the leading universal bank in Southeast Asia remains intact as the acquisition will help it to be connected in key markets beyond the region.Under the deal, CIMB will buy all of RBS' cash equities and associated investment banking business in Asia Pacific, except for cash equities business in Southeast Asia and South Korea, as well as associated investment banking business in South Korea.
It added that it will only acquire legal entities in Australia. In other jurisdictions, the relevant businesses of RBS including selected staff, assets and client mandates will be migrated to existing or new CIMB subsidiaries.
Nazir said CIMB will also apply for stockbroking licence from the South Korean regulator soon."This is a good deal for CIMB. The price and timing is good and if CIMB misses this opportunity, it will be difficult for another of such opportunity in the future," said an analyst from a local brokerage.In an analyst briefing, Nazir revealed that assets and businesses it is acquiring has a book value of over RM173 million, comprising RM113.1 million in cash and receivables, RM49.7 million of fixed assets, among others.RBS will also be paying RM67.4 million to CIMB to be used to defray the first year running cost of the acquired businesses.
"This means, the effective price to net tangible asset ratio of the transaction is about 0.98 times," said Nazir.As at January this year, RBS' cash equities and associated investment banking business has some 600 employees. From that, only 350-400 staff will join CIMB. So far, it has offered appointment letters to 94 staff, and 87 per cent of them have accepted. "The key of this deal is the people. If CIMB is able to retain key staff, then the likelihood of them securing the major existing clients will be higher," the analyst pointed out.The entire acquisition is expected to be completed by November.Shares of CIMB were suspended from trading during the second half of the trading session yesterday. Its rose 10 sen, or 1.13 per cent, to RM7.79 yesterday. So far this year, CIMB shares have appreciated by 4.7 per cent with a market capitalisation of RM57.9 billion, while the benchmark FTSE Bursa Malaysia KLCI has risen 4.77 per cent.
Dato' Seri Mohd Nazir bin Tun Abdul Razak (born 1966) is a Malaysian banking executive. He is the managing director and chief executive of CIMB Group, one of the largest financial services providers in Malaysia. Nazir is the youngest son of second prime minister Tun Abdul Razak, and a brother of the sixth and current prime minister Najib Razak.
Early life and education
Nazir Abdul Razak was born 1966 in Kuala Lumpur. His father died when he was ten years old. He attended St. John's Institution and Alice Smith School and continued his secondary education in the United Kingdom from the age of 13.[1] He obtained his Bachelor of Science in Economics & Politics from the University of Bristol and went on to gain a Master of Philosophy in Development Economics from the University of Cambridge.[2]
Career
After returning from the United Kingdom, Nazir joined the corporate advisory department of Commerce International Merchant Bankers Berhad. He rose to become managing director/chief executive of the bank, by then known as CIMB, in 1999.[2]
Nazir was named one of Asia’s 50 most influential figures of the last decade by FinanceAsia in 2006. He was also named "Best Top Executive in Malaysia" by Asiamoney for two consecutive years, in 2009 and 2010.[2]
Personal life
Nazir is married to Azlina Aziz, daughter of Tan Sri Aziz Taha, a former governor of Bank Negara Malaysia. They have two children.
Ref:http://www.btimes.com.my/Current_News/BTIMES/articles/20120402234623/Article/index_html
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