‘ANZ NEARS DEAL TO SELL AMMB STAKE’
KUALA LUMPUR: Australia and New Zealand Banking Group (ANZ) is near a deal to sell its Malaysian banking stake to a pension fund and exit the country, said sources familiar with the matter, in a transaction that could be worth around US$900 million (RM3.8 billion).
ANZ has been pursuing a sale of its 24 per cent stake in AMMB Holdings Bhd (AmBank) since early last year as part of a strategy to divest minority stakes in Asia.
Last month, RHB Bank and AmBank said they were starting merger talks, i n Malaysia's biggest-ever banking deal. As part of the all-share deal, valued at about US$9 billion, RHB is looking to acquire AmBank and the two banks are in exclusive talks until the end of next month.
ANZ’s stake is expected to be roughly 10 per cent in the merged entity.
Sources said ANZ is in talks to sell that stake to Retirement Fund Inc (KWAP), which already owns small stakes in both RHB and AmBank.
Both firms have “agreed in principle” to the deal at a price equivalent to one time book value of AmBank, said one of the sources.
“KWAP has always had an aspiration to hold a significant investment in a financial institution. KWAP had considered purchasing part of ANZ's stake two years ago but was not agreeable to the pricing,” said the source.
KWAP and AmBank declined to comment.
ANZ’s stake is also drawing interest from another Malaysian in- stitutional investor, said the source.
RHB has indicated to analysts that it would pay AmBank shareholders a one-time multiple of the latter’s book value.