A potential bidding war for a Malaysian lender could be lucrative for Abu Dhabi Commercial Bank (ADCB).
RHB Capitalof Malaysia has received offers from two competing banks to merge. ADCB owns 25 per cent of RHB Capital and its holdings could increase in value if the competition heats up.
CIMB Group Holdings and Malayan Banking won central bank approval yesterday to begin separate merger talks on RHB Capital, triggering a battle to create South East Asia's largest lender. The banks have three months to complete the negotiations.
Maybank, Malaysia's largest lender, and CIMB, which is headed by Datuk Seri Nazir Raza, the Malaysian prime minister's brother, are aiming to strengthen their dominance as the country's central bank grants more licences to overseas lenders.
A merger of CIMB and RHB would produce a combined capitalisation of US$27.3 billion while Maybank could increase its market worth to $28.8bn. Singapore's DBS Group Holdings, valued at $27.7bn, is currently South East Asia's largest lender.
"With a potential merger between RHB and either Maybank or CIMB, ADCB may realise a higher exit price," said Jaap Meijer, an analyst at Alembic HC Securities in Dubai. "Both banks should be able to offer prices higher than current market value" for RHB.
On the Bursa Malaysia, RHB Capital shares rose to a 14-year high yesterday, up 8.4 per cent to 9.99 ringgit. ADCB rose 0.3 per cent to Dh2.92 and shares of the lender have added 7.3 per cent since the start of this week.
ADCB has appointed Goldman Sachs and Merrill Lynch to advise on an exit, Ala'a Eraiqat, the lender's chief executive, said in April.
A Malaysian newspaper, The Star, reported ADCB may sell its stake to Abu Dhabi Investment Council.
Honeymoonish
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
MEDIEVIL%20(1998)
COMPANY%20PROFILE
COMPANY PROFILE
Company%C2%A0profile
The biog
Born: High Wycombe, England
Favourite vehicle: One with solid axels
Favourite camping spot: Anywhere I can get to.
Favourite road trip: My first trip to Kazakhstan-Kyrgyzstan. The desert they have over there is different and the language made it a bit more challenging.
Favourite spot in the UAE: Al Dhafra. It’s unique, natural, inaccessible, unspoilt.
COMPANY%20PROFILE
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
SOUTH%20KOREA%20SQUAD
Company%20profile%20
BEETLEJUICE BEETLEJUICE
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
'The Lost Daughter'
Director: Maggie Gyllenhaal
Starring: Olivia Colman, Jessie Buckley, Dakota Johnson
Rating: 4/5
The%20specs
MATCH INFO
Juventus 1 (Dybala 45')
Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')
Red card: Rodrigo Bentancur (Juventus)
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
The%20BaaS%20ecosystem
While you're here
While you're here
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
US versus China
Sulaiman Hakemy: Who really deserves to rule the Arctic?
Ni Jian: Covid-19 origins are a matter for science, not politics
Editorial: Global collaboration for a vaccine is the way to go
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
WE%20NO%20LONGER%20PREFER%20MOUNTAINS
COMPANY%20PROFILE
Ticket prices
General admission Dh295 (under-three free)
Buy a four-person Family & Friends ticket and pay for only three tickets, so the fourth family member is free
Buy tickets at: wbworldabudhabi.com/en/tickets
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
Company%20Profile
COMPANY%20PROFILE
The%20specs
MORE FROM ED HUSAIN: The UAE-Israel accord is a win for every Muslim
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km