Latest news with #AllianceBankBhd
New Straits Times
2 days ago
- Business
- New Straits Times
Relaxed foreign equity rules may spur M&A interest in smaller Malaysian banks
KUALA LUMPUR: Smaller Malaysian banks could be potential targets if the government relaxes its rules on foreign equity ownership in strategic sectors incuding financial services, analysts said. They named the likes of Alliance Bank Bhd, AMMB Holdings Bhd, MBSB Bank Bhd and Affin Bank Bhd that could attract interest from foreign players. MBSB Investment Banking Bhd (MBSB IB) said regional players from Singapore and China with a deeper strategic stake in Malaysia would likely be keener than the Western peers. MBSB IB noted that Western institutions, including Citibank and Standard Chartered, had recently withdrawn from the Asean region, citing intense competition as the main reason. Players from Singapore could be among the suitors due to the republic's geographical proximity, and deeper ties with Malaysia, while China has been forging strategic partnership with Asean as of late. MBSB IB said AMMB has long been viewed as a potential candidate for mergers and acquisitions, given its modest size and the fundamental improvements it has made in recent years. This is further supported by speculation that its major shareholder and founder Tan Sri Azman Hashim may be open to selling part of his stake if the valuation is favourable "In the case of Affin, Bank of East Asia is said to have been looking to dispose of its holdings for quite some time," it added. Malaysia reportedly was considering easing foreign ownership limits in strategic industries, including the banking and power sectors, as part of efforts to reduce the 25 per cent US tariff on the country's goods. Currently, Malaysia imposes a 30 per cent cap on foreign ownership in commercial banks, while foreign equity in investment and Islamic banks is limited to 70 per cent. Affin Hwang Investment Bank said any liberalisation in rules will have to be open to all foreign entities and not just US companies although it relates to negotiations on US tariff on Malaysian goods. "We gather that DBS is interested to acquire a controlling stake in Alliance Bank, and the possible easing of foreign shareholding limits in local banks will be positive for the banking group, given the potential entry of a strong strategic shareholder. "Public Bank Bhd could also see M&A interest from foreign entities and helo clear the current share overhang due to the majopr shareholders' plan reduce their stake," Affin Hwang added.
The Star
09-07-2025
- Business
- The Star
Trading ideas: Alliance, Binastra, YTL Power, SkyWorld, Ho Wah, Bina Puri, Sapura Energy, NPC, Aeon Credit
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Alliance Bank Bhd said its rights issue of two new shares for every 17 shares held has been oversubscribed by 55.1%. Binastra Corp Bhd 's wholly-owned subsidiary Binastra Builders Sdn Bhd has secured a RM405mn construction job for The Queenswoodz residential project in Bukit Jalil, Kuala Lumpur. YTL Power International Bhd has invested about RM10bn in AI and AI infrastructure to date and encourages Malaysian companies to invest in AI and leverage the infrastructure. Skyworld Development Bhd is acquiring a 25.9-acre parcel of land in Batu Kawan, Penang, for RM48.51mn as part of a previously announced joint development to build affordable housing units in the state. Ho Wah Genting Bhd has redesignated executive director Lim Wee Kiat as its chief executive officer, effective July 7. Bina Puri Holdings Bhd said two of its wholly owned subsidiaries have been served with winding-up petitions by the government, via the Inland Revenue Board, for failing to settle outstanding tax liabilities. Sapura Energy Bhd will convene an extraordinary general meeting on July 30, 2025, for shareholders to vote on its proposed regularisation plan aimed at restoring the company's financial health and exiting Practice Note 17 status. Sabah-based plantation company NPC Resources Bhd will be delisted from Bursa Malaysia effective July 11. Aeon Credit Service (M) Bhd 's net profit fell by 27.1% to RM77.6mn in 1QFY26 ended May 31, 2025, from RM106.4mn a year ago. This was largely due to a RM15.9mn loss from its associate, Aeon Bank.
