(Sept 4): Investors want clarity on AMMB Holdings’ future after its proposed merger with RHB Bank was called off, especially since its major shareholder Australia and New Zealand Banking Group (ANZ) intends to sell its stake, say fund managers and head of research houses.
“With this major shareholder wanting to divest and no takers, the road map ahead and future direction are not that clear. As long as there is no clarity on their [AMMB’s] strategy and what ANZ is going to do, investors will not be willing to pay a premium or ascribe to it a valuation that is at par to the industry’s,” Rakuten Trade head of research Kenny Yee tells The Edge.
AMMB, Affin Holdings and RHB Bank are the only banks listed on Bursa Malaysia that are trading below one time their book value at the moment. RHB Bank’s shares, however, have been on an upward trend since news of a possible delay in the merger talks emerged.