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EPF's waiver quest on mega bank merger can cut both ways

It may regret move one day when it's on the other side as minority shareholder

Anita Gabriel
Published Thu, Oct 16, 2014 · 09:50 PM
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THE Employees Provident Fund (EPF), keeper of some RM600 billion (S$232 billion) of retirement monies belonging to 14 million working Malaysians, is aching to show its hand on the mega banking merger involving CIMB Group, RHB Capital and Malaysia Building Society Bhd - a union that will create the fourth largest lender by assets in South-east Asia.

But it can't. There are restrictive rules in place on related party transactions (RPT) barring conflicted shareholders from voting. The fund owns stakes in all three lenders.

Undeterred, it is earnestly seeking a rule exemption from Bursa Malaysia so it can exercise its voting right.

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