Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
KUALA LUMPUR: RHB Capital Bhd's (RHBCap) shares were traded higher in morning session Monday spurred by news on its possible privatisation, dealers said.
At 11.12am, the investment holding company gained 0.36 per cent or three sen to RM8.48, after hovering between RM8.44 and RM8.56, with 550,600 shares traded.
It was reported that a proposal to privatise RHBCap is on the cards.
The rationale as stated is to prepare the banking group to meet changes proposed by the Financial Services Act (which will include Bank Negara having regulatory supervision on financial holding companies), and to create a more efficient platform for dividend payments and strengthen its capital base.
HwangDBS Vickers Research took the news as positive for RHBCap.
"We see these potential developments to be positive if these materialise. Such a restructuring could put the eventually to be listed RHB Bank Bhd in an improved capital position," it said in a note.
The research house is maintaining its "buy" call on RHBCap with a target price of RM9.30. -- BERNAMA
Company Name: RHB CAPITAL BHD
| Research House: RHB | Price Call: BUY | Target Price: 9.30 |
KUALA LUMPUR: RHB Capital Bhd's (RHBCap) shares were traded higher in morning session Monday spurred by news on its possible privatisation, dealers said.
At 11.12am, the investment holding company gained 0.36 per cent or three sen to RM8.48, after hovering between RM8.44 and RM8.56, with 550,600 shares traded.
It was reported that a proposal to privatise RHBCap is on the cards.
The rationale as stated is to prepare the banking group to meet changes proposed by the Financial Services Act (which will include Bank Negara having regulatory supervision on financial holding companies), and to create a more efficient platform for dividend payments and strengthen its capital base.
HwangDBS Vickers Research took the news as positive for RHBCap.
"We see these potential developments to be positive if these materialise. Such a restructuring could put the eventually to be listed RHB Bank Bhd in an improved capital position," it said in a note.
The research house is maintaining its "buy" call on RHBCap with a target price of RM9.30. -- BERNAMA
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