KUALA LUMPUR, June 29 — RHB Investment Bank Bhd has proposed to sell the stock broking business under its subsidiary RHB Securities Singapore Pte Ltd (RHBSS) to Phillip Securities Pte Ltd.
In a filing with Bursa Malaysia, RHB Bank said its investment banking unit today inked a conditional agreement with Phillip Securities for the proposed disposal of RHBSS, which is expected to be completed in the third quarter of 2020.
As part of the proposed transaction, the capital markets businesses under RHBSS encompassing client coverage, research and corporate advisory services, equity capital markets and institutional equities sales would to transferred to RHB Bank’s branch in Singapore.
As such, Philip Securities would only be acquiring RHBSS’ stick broking business, RHB Bank said without mentioning any purchase consideration figure.
“In line with the RHB Banking Group’s five year strategic aspirations - FIT22, RHB Bank will be in a position to better serve our wholesale clients in Singapore with the proposed transfer of the capital markets business to RHB Bank, Singapore.
“The increasingly competitive broking environment has made it no longer viable for RHB Securities Singapore to continue its stock broking business,” it said.
RHB Bank said the proposed disposal would not have any effect on the issued and paid-up share capital and substantial shareholders’ shareholdings of the bank, and it was not expected to have any material effect on the net assets and earnings of the group for the financial year ending Dec 31, 2020. — Bernama