After winning a bid to take over Rashid Hussain Bhd last week, the Employees Provident Fund (EPF) says its top priority is to sell the banking group's non-core assets and trim its massive debts.

EPF chief executive Azlan Zainol aims to reduce RHB's debts of RM3.6 billion to about RM1 to RM2 billion ringgit, state news agency Bernama said in a report late Thursday.

"We are going to sell Vision City. Once this is done, RHB has nothing much left. We will delist RHB but retain RHB Capital's listing," Azlan said.

Vision City, a commercial complex in the heart of Kuala Lumpur, is valued at RM400 million, Azlan said, adding that even the RHB headquarters ( photo ) could be put up for sale.

"Now we are discussing with our adviser the debt level. To me, it must be (at a) manageable level," he said.

EPF beat two rivals for Utama Banking Group Bhd's 32.8 percent stake in RHB after increasing its offer to RM2.25 billion from RM2.20 billion.

The state pension fund then announced a restructuring of the group, comprising RHB and its unit RHB Capital, which in turn owns RHB Bank.

Apart from delisting RHB, the exercise includes plans to eventually reduce its stake in RHB Capital from 75 percent to 40 percent.

Strategic partners

In the Bernama report, Azlan said EPF had not held talks with any potential partners or investors for RHB but he noted Kuwait Finance House would be a good strategic partner given its expertise in Islamic banking.

Kuwait Finance House led a consortium of Middle East interests to acquire RHB but even though it lost out, the Islamic banking group said it still hoped to have a role to play in RHB.

EPF hopes to secure two to three strategic partners for RHB "very quickly", Azlan said.

A New Straits Times report Friday quoted unnamed bankers as saying Newbridge Capital, a US private equity firm, is keen to acquire as much as 20 percent of RHB Capital.

Newbridge has "expressed interest" to start talks with EPF, the bankers said.