PETALING JAYA: RHB Bank Bhd’s wholly owned subsidiary RHB Investment Bank Bhd (RHBIB) is disposing of its entire stockbroking business in RHB Securities Singapore Pte Ltd (RHBSS) to Phillip Securities Pte Ltd via a conditional share purchase agreement today.
Phillip Securities will only be acquiring RHBSS’ stockbroking business.
As part of the proposed transaction, RHB Bank 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.
This internal transfer of the capital markets businesses from RHBSS to RHB Bank, Singapore will enable the 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.
The alignment of the capital markets and the wholesale business of RHB Bank, Singapore under one entity would allow RHB Bank to more effectively deliver its solutions to its targeted clients.
RHB 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 it to provide a one stop solution for its 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.
“Upon the completion of the proposed transaction as a whole, 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,” he said in a statement.
Khairussaleh added that the proposed disposal would also benefit existing brokerage customers, who would gain from a wider range of broking services, while the transfer of capital markets businesses within RHBSS to RHB Bank, Singapore would enable the bank’s corporate clients to have access to a comprehensive suite of capital markets and financing solutions
The group will strive to ensure seamless transition for RHBSS customers affected by the proposed transaction, in particular customers who are holding trading or margin financing accounts.
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.