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.