Bursa Malaysia upholds "EPF cannot vote" decision

PETALING JAYA: Bursa Malaysia Securities Bhd has upheld an earlier decision by its listing committee to disallow the Employee's Provident Fund from voting in the mega merger planned between RHB Capital Bhd, Malaysia Building Society Bhd (MBSB) and CIMB Group Holdings Bhd.
Bursa Malaysia had dismissed MBSB's appeal on behalf of EPF vide a letter dated Dec 10, 2014. Bursa Malaysia said this was because there is no adequate justification that the potential conflict of interests involving EPF has been eliminated or sufficiently mitigated.
The EPF has a 41.5% stake in RHB, 64.6% in MBSB and a 14.6% interest in CIMB.

"The letter states, inter alia, that after due deliberation and having considered all the facts and circumstances of the matter, including oral representations from EPF, the appeals committee decided that the matters raised and the grounds of appeal put forth did not justify a departure from the decision of the listing committee," MBSB said in its filing with Bursa Malaysia.
RHB Cap's shares closed 15 sen lower at RM7.60 yesterday, CIMB's shares was up 9 sen at RM5.50, while MBSB's shares closed unchanged at RM2.51.