Sbb MergerEssay Preview: Sbb MergerReport this essay1.0 COMPANY PROFILEThe focus of this Strategic Management assignment is on Southern Bank Berhad. It will be divided into eight major sections, namely company profile, financial analysis, industry profile, PEST analysis, strategies of the company, strategy analyses, comments and strategy recommendations, and the conclusion. Therefore, the scope covered in this assignment is indeed a large one, and various sources are used in this assignment. Where appropriate, the sources used are documented and given due recognition.
The profile of the company will be discussed in this section. Most of the information in this section, because of its generic nature, was sourced from the Internet and the annual reports of the company.
Company BackgroundSouthern Bank Berhad (hereinafter called “SBB”) is Malaysias ninth largest bank and one of the ten anchor banks in Malaysia as of February 2000. The other nine anchor banks are Malayan Banking Berhad, Bumiputra Commerce Bank Berhad, RHB Bank, Public Bank Berhad, Arab-Malaysian Bank Berhad, Hong Leong Bank, Perwira Affin Bank, Multi-Purpose Bank Berhad, and EON Bank. SBB was the first bank in Malaysia to successfully complete a merger with the then Ban Hin Lee Bank in June 2000 .
SBB is the parent company of ten different subsidiary companies, namely S.B. Venture Capital Corporation Sdn Bhd, Southern Nominees (Asing) Sdn Bhd, Southern Nominees (Tempatan) Sdn Bhd, SBB Capital Markets Sdn Bhd, S.B. Properties Sdn Bhd, BHLB Properties Sdn Bhd, Southern Investment Bank Berhad, BHL Venture Berhad, Southern Finance Berhad, and Southern Nominees (Singapore) Sdn Bhd. SBB holds full ownership (100% stake) in all the subsidiaries except for Southern Investment Bank Berhad, of which it holds 80% shares. SBB also has a 20% stake in BHLB Trustee Berhad, which makes it only an associated (not parent) company with BHLB Trustees Berhad. Some of these subsidiaries, in turn, are parent companies of other subsidiaries. Therefore,
SBB has sole and total ownership of the majority of the SBB shares. SBB acquired SBB’s subsidiary SBB Investment Research at a cash-based investment rate of 10% per annum on August 31, 2016.[/p]SBB holds full stock options and/or equity holders and in certain cases, shares of the SBB (as per the terms of its registration). This was done following completion of all mergers, acquisitions, transfers, transactions and dispositions of its subsidiaries since the commencement of the merger. In particular, it acquired the stock options on July 27, 2009, at the earliest in the year. SBB also owns stock as a share of the equity holders and in certain cases has no ownership of shares in these companies, which were the principal companies of SBB. In order to be considered a shareholder, you must be at least 18, or you may obtain a right to beneficially own shares of a SBB Company at the time you acquire a majority (75%) of the outstanding shares, not less than 24 hours after you acquire a majority. The Company has no control over your assets or your personal financial statements. SBB shares are issued in a “cash only” form, and will not be taxed under the ordinary tax rules. You hereby relinquish all ownership of SBB’s equity. As such, if you elect to file a tax return immediately after a vote on or about the stock options, any claim that is based on your tax returns cannot be made or contested in connection with the election or voting. SBB owns stock as the sole and all-owned stock, including, but not limited to, those of the SBB Board of Directors.[/p]If you have a business relationship with SBB, please refer to the information provided in “SBB & BBL Legal Services,” and “SBB & BBL Securities Information,” provided at this site.
[p]This Agreement shall be signed in the absence of any further notice and by oral or written signature.
[p]Effective July 30, 2016. The transfer and sale of shares of BBL is contingent upon acceptance by SBB Corporation of S.B. Venture Capital and an agreement that is entered into in the name of SBB. When you have submitted a written statement to SBB, SBB shall include that statement in your filing with the IRS. You waive all rights or remedies under this Agreement to withdraw this request.
[p]Signature of the Board. As defined in the Securities Act of 1933, as amended (Secs. 1–5, Sub Secs. 2–1, Sub Secs. 8–5 and 8–10), SBB shall have