Disposal of RHB Berhad

Following several months of negotiations with potential bidders for its 32.8% stake in Rashid Hussain Bhd (RHB), a CMS subsidiary, Utama Banking Group (UBG) announced on 8 March 2007 that its Board had accepted a revised offer of RM2.25 billion from the EPF (Employees Provident Fund), subject to shareholder and regulatory approvals. This resulted in a net gain for UBG and the deal made EPF the largest shareholder in RHB. Following UBG’s disposal of its stakes in RHB, CMS was reclassified by Bursa Malaysia from ‘Finance’ sector to the ‘Industrial Products’ sector.