RHB Bank Bhd, Malaysia’s fourth-largest lender by assets, has announced that it plans to acquire the 51 per cent stake in Vietnam Securities Corporation (VNSEC) it does not currently own for VND121.63 million ($5.37 million) in cash.
The bank, through its wholly-owned subsidiary RHB Investment Bank Berhad, has entered into a conditional share purchase agreement with Chu Thi Phuong Dung, Truong Lan Anh and Viet Quoc Insurance Broker Joint Stock Company for the acquisition of the remaining 51 per cent equity interest in VSEC.
The proposed acquisition is subject to the approvals of Bank Negara Malaysia (BNM) and State Securities Commission of Vietnam (Vietnam SSC), RHB Bank said in a statement to DEALSTREETASIA.
Upon completion of the proposed acquisition and subject to approval from Vietnam SSC, VSEC will become a wholly-owned subsidiary of RHB Investment Bank.
The acquisition will not have any effect on the issued capital and substantial shareholders’ holdings in RHB Bank, and it is not expected to have any material effect on the earnings and net assets of RHB Bank and its subsidiaries for the financial year ending 31 December 2018.
VSEC was established in December 2006 under decision No.21 issued by Vietnam State Securities Commission (SSC) and commenced operations in March 2007. RHB currently has a 49 per cent stake in the Vietnamese securities corporation.
RHB Bank Berhad was granted a license to open its representative office in Ho Chi Minh City in 2008.
The RHB Banking Group, with RHB Bank Berhad as the holding company, is the fourth largest fully integrated financial services group in Malaysia. The group’s core businesses are structured into seven main businesses, namely Group Retail Banking, Group Business & Transaction Banking, Group Wholesale Banking, RHB Singapore, Group Shariah Business, Group International Business and Group Insurance.