KUALA LUMPUR: RHB Banking Group has proposed to dispose of its stockbroking businesses in RHB Securities Singapore Pte Ltd (RHBSS) to Phillip Securities Pte Ltd.
In a statement Monday, RHB said its wholly-owned subsidiary RHB Investment Bank Bhd (RHBIB) has entered into a conditional share purchase agreement with Phillip Securities for the disposal of RHB Securities.
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.
As such, under the proposed transaction, Phillip Securities will only be acquiring RHBSS’ stockbroking business.
“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 through its suite of wholesale banking solutions,” RHB said.
It added that the alignment of the capital markets and the wholesale business of RHB Bank, Singapore under one entity would allow RHB Banking Group to more effectively deliver its solutions to its targeted clients.
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 managing director Datuk Khairussaleh Ramli said the internal transfer of the capital markets businesses from RHBSS to RHB Bank, Singapore is a natural move to enable us to provide a one-stop solution for our corporate clients.
“With the integration of capital markets services and the corporate banking and global markets services under RHB Bank, Singapore, we are poised to be able to serve our customers better.
“The group leverages on Singapore as its regional platform to provide cross border capital markets, advisory and banking services to clients across Asean,” he said.
Upon the completion of the proposed transaction as a whole, Khairussaleh said RHB Bank, Singapore will be in a stronger position to deliver integrated value propositions to its clients, leveraging on key strengths of its investment banking team, in line with its five-year FIT22 strategic aspirations.