RHB Investment Bank, a wholly-owned subsidiary of RHB bank, has entered into a conditional share purchase agreement with Phillip Securities for the disposal of RHB Securities Singapore (RHBSS).
Under the proposed transaction, Phillip Securities will only be acquiring RHBSS’ stockbroking business, while RHB will internally transfer its capital markets businesses under RHBSS encompassing client coverage, research and corporate advisory services, equity capital markets and institutional equities sales to RHB Bank, Singapore, which is a branch of RHB Bank, the bank said in an announcement filed on the Bursa Malaysia stock exchange on Monday.
The transaction is expected to be completed in the third quarter of the year.
The bank said that the alignment of the capital markets and the wholesale business of RHB Bank, Singapore under one entity will allow it to more effectively deliver solutions to its targeted clients.
Stronger Position
«RHB Bank, Singapore will be in a stronger position to deliver integrated value propositions to our clients, leveraging on key strengths of our Investment Banking team, in line with our five-year FIT22 strategic aspirations,» Khairussaleh Ramli, group managing director, RHB Banking Group said in the announcement.
RHB Singapore was first established in 1961 through a series of rapid expansion and strategic mergers.
More Competitive
Phillip Securities said in a separate statement that the acquisition will improve its competitive position and distribution scale in Singapore and Asia, and accelerate its ambition to be Singapore’s leading retail financial service provider.
«We believe that our acquisition of RHBSS’s stockbroking businesses, specifically new clients and a team of experienced dealers and trading representatives, will strengthen PhillipCapital’s position as an integrated financial house,» Luke Lim, managing director of Phillip Securities said.
Phillip Securities is a part of PhillipCapital, which was incorporated as a stockbroker in 1975. PhillipCapital has since has grown into an integrated Asian financial house with a global presence that offers a full range of quality and innovative services to retail and high net worth individuals, family offices, as well as corporate and institutional customers. It operates in 15 countries and serves serving over 1 million clients, with total assets under management of more than $35 billion.
