KUALA LUMPUR: Alliance Bank Malaysia Bhd has proposed to dispose of its stockbroking business, held by wholly-owned unit Alliance Investment Bank Bhd (AIBB), to Phillip Futures Sdn Bhd.
AIBB today inked a conditional agreement to sell the business for a cash amount equal to the business’ net asset value -- RM205.2 million as at Sept 30, 2021 -- plus 60 per cent of the aggregate brokerage fee for brokerage transactions concluded by Phillip Futures in the 12-month period from the specified transfer point, less any brokerage transaction costs and any receivable shortfall.
"The proposed disposal of the stockbroking business is part of the group’s strategic plan to re-prioritise its businesses to accelerate growth in Alliance Bank’s consumer, small and medium-sized enterprises (SME) and Islamic banking businesses,” the bank said in a filing with Bursa Malaysia.
AIBB has also inked a separate conditional agreement to transfer its capital markets business to another Alliance Bank subsidiary, Alliance Islamic Bank Bhd,
In a separate statement, Alliance Bank said it would also enter into a strategic stockbroking partnership arrangement with Phillip Futures’ parent PhillipCapital Group, enabling the bank’s customers to gain access to regional trading platforms and a broad range of global investment products.
The bank expects to conclude the corporate exercise in the first half of 2022.
"As part of the bank’s broader vision to be the Preferred Bank of Business Owners, it will invest in significantly scaling up its SME business.
"Our SME banking business has consistently outpaced the industry’s growth over the past five years and we aim to be among the top four banks in SME market share in Malaysia,” Alliance Bank group chief executive officer Joel Kornreich said. - Bernama