Malaysia’s RHB Banking Group said Monday its wholly-owned subsidiary RHB Investment Bank has entered into a conditional share purchase agreement with Phillip Securities for the disposal of its stockbroking businesses in Singapore.
The proposed transaction entails the disposal of RHB Investment Bank’s entire equity interest in RHB Securities Singapore Pte. Ltd (RHBSS) to Phillip Securities, a unit of Philip Capital.
As part of the proposed transaction, RHB Banking Group 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 Bhd.
Phillip Securities will only be acquiring RHBSS’ stockbroking business, the banking group said in a statement.
This internal transfer of the capital markets businesses from RHBSS to RHB Bank, Singapore would enable the RHB Banking Group to provide a more holistic customer experience to its corporate and institutional clients in Singapore and the region, RHB said.
The proposed transaction is subject to the approvals of the relevant regulatory authorities and is expected to be completed in the third quarter of 2020.
RHB Banking Group has been active in merger and acquisition activities in recent years. In December last year, RHB Bank Bhd announced it has called off discussions to sell its entire 94.7% stake in its insurance arm, RHB Insurance, to a unit of Japan’s Tokio Marine Holdings Inc, Tokio Marine Asia Pte Ltd (TMA). The deal would have seen the merger of RHB Insurance and Tokio Marine Insurans (M) Bhd, the general insurance arm of TMA, into the second largest general insurer group in Malaysia.
In February last year, RHB Investment Bank had completed the acquisition of remaining 51% equity interest in Vietnam Securities Corporation not held by the bank for VND121.63 million ($5.37 million) cash.
The RHB Banking Group, with RHB Bank Bhd as the holding company, is the fourth largest fully integrated financial services group in Malaysia. The group’s regional presence now spans ten countries, including Malaysia, Singapore, Indonesia, Thailand, Brunei, Cambodia, Hong Kong, Vietnam, Lao PDR, and Myanmar.
A member of PhillipCapital, Phillip Securities offers broking in securities, futures, foreign exchange, bonds, precious metals and commodities, unit trusts, contracts for difference, exchange-traded funds, fund management, among others.
Headquartered in Singapore, PhillipCapital operates in the financial hubs of 15 countries, serving over 1 million clients with assets under management of more than $35 billion.