Monday, 23 May 2016

RHB Bank Bhd capital distribution within expectations, said Maybank IB Research

The proposed capital distribution of 1.3 RHB Bank Bhd shares for every one RHB Capital Bhd (RHBCap) shares is within expectations with the group's restructuring exercise set to conclude by July, said Maybank IB Research in a note today.

The research house's valuations for RHB remain unchanged following the announcement of the distribution and capital repayment exercise. Maybank IB currently has a fair value of RM6.30 for RHBCap's shares.

“We peg RHB Bank's proforma 2016 book value to a multiple of 0.9 times while accounting for the share swap ratio as well. Our 'hold' rating is maintained,” it said.

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