KUALA LUMPUR: RHB Capital , Malaysia's fifth largest lender, is expected to offer between 1.9 to 2.2 times book value for OSK Investment Bank, The Edge financial weekly said citing an unnamed source.
RHB and OSK Holdings said on Thursday they had sought the central bank's approval to start talks to merge RHB's banking business with that of OSK Investment Bank.
OSK Investment Bank could fetch 1.72 billion Malaysian ringgit to 1.99 billion Malaysian ringgit, based on its estimated book value of about 906.4 million ringgit at end-2010, the paper said.
RHB Capital was not immediately available for comment
The proposed merger comes as Malaysian authorities are encouraging lenders to consolidate to create larger banks that can acquire more regional market share.
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