Public Bank’s unit buys RHB Securities Vietnam
KUALA LUMPUR: Public Bank Bhd’s (PBB) whollyowned subsidiary, Public Bank Vietnam Ltd (PBVN), has entered into a sale and purchase agreement with RHB Investment Bank Bhd to acquire 100 per cent equity interest in RHB Securities Vietnam Co Ltd for RM72.55 million.
In a filing with Bursa Malaysia, PBB said the proposed acquisition is in line with PBVN’s business objectives and growth strategies to expand its operational capabilities in Vietnam.
“As such, the proposed acquisition presents an opportunity for PBVN to expand its financial services offerings in Vietnam with the inclusion of securities trading services.
“Upon completion of the proposed acquisition, PBVN intends to leverage on its existing client base to grow the securities trading business,” it said.
The bank noted that the proposed acquisition is also expected to further strengthen the presence of the group in Vietnam as well as provide synergy to its Indo-China operations.
“PBB Group has an existing securities trading arm in Cambodia, namely Campu Securities Plc, which is a wholly-owned subsidiary of Cambodian Public Bank Plc, which in turn is a whollyowned subsidiary of PBB.
“Barring any unforeseen circumstances, the proposed acquisition is expected to contribute positively to the future earnings of the PBB Group,” said the filing.
Meanwhile, RHB Banking Group managing director and chief executive officer Mohd Rashid Mohamad said the decision to divest equity interest in RHB Securities Vietnam to PBVN aligns with the group’s long-term strategic business direction.
He said the group will focus their resources and efforts on bolstering RHB Investment Bank’s operations in other markets where it is more established and has a stronger presence, further reinforcing its unwavering commitment to sustainable growth and service excellence.
“We remain committed to ensuring a smooth transition process and will ensure that we continue to deliver service excellence to our clients throughout the transition period.
“The corporate exercise is targeted to be completed by the end of the second quarter of 2024,” it said.
RHB Securities Vietnam is licensed under the laws of Vietnam to engage in the business of securities brokerage, securities investment consultancy, securities custodian services and proprietary securities trading.