KUALA LUMPUR (June 7): Public Bank Bhd (KL:PBBANK) has received approval from the State Securities Commission of Vietnam (Vietnam SSC) to acquire RHB Bank Bhd’s (KL:RHB) stockbroking firm in Vietnam for RM72.55 million.
In a bourse filing on Friday, Public Bank said the approval was received on Wednesday via a letter from Vietnam SSC which was dated June 4.
The approval by Vietnam SSC is subject to two conditions, namely the proposed acquisition must be completed within six months from the date of approval, failing which the approval shall lapse, and the stockbroking firm RHB Securities Vietnam Company Ltd (RHBSVN) shall implement the reporting and publication regime in accordance with the applicable regulation.
On Feb 19, Public Bank said its wholly owned unit Public Bank Vietnam Ltd (PBVN) inked a sale and purchase agreement with RHB’s wholly owned unit RHB Investment Bank Bhd to acquire the entire charter capital of RHBSVN for RM72.55 million (374 billion Vietnamese dong).
Upon completion of the proposed acquisition, RHBSVN will become a wholly owned subsidiary of PBVN.
Previously known as Vietnam Securities Corp and incorporated in 2006, RHBSVN adopted its current name in 2019 following the acquisition by RHB Investment Bank in 2019.
RHBSVN primarily offers securities brokerage services, securities investment consultancy, securities custodian services, and proprietary securities trading.
At Friday’s noon break, shares in Public Bank slipped one sen or 0.24% to RM4.12, giving it a market value of RM79.97 billion.
RHB Bank’s share price was two sen or 0.36% higher at RM5.52, translating into a market capitalisation of RM24.06 billion.