KL merchant bank acquired

KL merchant bank acquired

KUALA LUMPUR (AFP): Bank Simpanan Nasional, Malaysia's soon-to-be-listed national savings bank, yesterday took over Rakyat Merchant Bankers Bhd., which was declared insolvent last year by the central Bank Negara.

Bank Simpanan said it was now negotiating to sell to a local commercial bank a 30 percent stake in the insolvent merchant bank, to be known as BSN Merchant Bank Bhd. when it begins operation in August, officials said.

BSN Merchant Bank has been set up with an authorized capital of 50 million ringgit (US$20 million) and a paid-up capital of 100 million ringgit ($40 million).

"We will inject another 50 million ringgit once it starts in August," Bank Simpanan chairman Zahid Hamidi was reported by Bernama news agency as saying when sealing the deal with Rakyat Merchant's chief executive Lee Khee Joo.