THE key drivers in the merger process are CIMB Group chief executive Datuk Seri Nazir Razak and the Employees Provident Fund (EPF) chief executive officer Datuk Shahril Ridza Ridzuan. Both are savvy in the investment world, but they need Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz’s blessings to see the proposed merger through.
DATUK SERI NAZIR RAZAK
AS the face of CIMB Group for the past 15 years, some perceive Nazir’s transition to bank chairman as a prelude to this mega merger.
He was quoted as saying: “I am not going anywhere and no one should be unduly concerned, as I would continue to helm the organisation, albeit in a different role.”
While CIMB Group’s involvement in this merger has caught many off guard, it is in the bank’s DNA to grow rapidly via mergers and acquisitions. Starting as an executive in the corporate advisory department of CIMB Investment Bank and subsequently becoming its chief executive at the tender age of 33, Nazir, among others, has played a key role in the bank’s transformation to a regional group.
Under his leadership, the lender acquired G K Goh Securities Pte Ltd and Bumiputra-Commerce Bank in 2005, Southern Bank Bhd in 2006, PT Bank Niaga Tbk in 2007, PT Bank Lippo Tbk and Bank Thai in 2008, and the Royal Bank of Scotland Group Plc’s Asia-Pacific investment banking businesses in 2012.
TAN SRI DR ZETI AKHTAR AZIZ
THE speed at which the financial institutions involved in this gargantuan deal received the approval from the central bank is a big sign that it is agreeable to it.
Having been named as one of the world’s best central bank chiefs, Zeti’s term with Bank Negara will be ending in 2016.
She has been quoted in media reports as saying that “there are just one or two things that I would like to do before stepping down, such as completing my work on Islamic finance”.
Hence, it is not surprising that the corporate exercise involves the formation of a mega Islamic bank. During Zeti’s, Malaysia has stamped its mark as the most important Islamic finance centre.
In one decade, she led Malaysia to become the world’s largest sukuk market, tripled Islamic banking assets to 21%, and enabled over 100 domestic and international Islamic financial institutions to operate in the country.
In the international financial arena, Zeti contributed to global acceptance of Islamic finance.
DATUK SHAHRIL RIDZA RIDZUAN
IT has been said that the EPF is a key driver in the merger, as it is the common major shareholder in all three parties.
Shahril has always been focused that EPF should not play an active role in its investments. This merger will solve his problem in two companies where it is the largest shareholder and has substantial influence over the appointment of key managers. They are Malaysia Building Society Bhd and RHB Capital Bhd, where the EPF has stakes of 64.73% and 40.76%, respectively.
Earlier this year, the EPF had reduced its interest in Malaysian Resources Corp Bhd and left its running to the Gapurna Group.
Shahril took over as CEO of the EPF from Tan Sri Azlan Zainol in April last year. However, his two-year term is likely to be extended.
He first joined the EPF on Dec 1, 2009 as deputy CEO (investment), where he was responsible for the organisation’s investment strategy and policy. He had contributed towards the sterling growth of EPF’s overseas investments from 5.96% in 2009 to 17.21% currently.
