KUALA LUMPUR: Public Bank Bhd plans to take over RHB Investment Bank (IB) Bhd's Vietnam-based securities broker business for VND374.00 billion (RM72.55 million) cash.
Public Bank today announced that its VIetnam unit Public Bank Vietnam Ltd (PBVN) had signed a sale and purchase agreement with RHB IB to purchase a 100 per cent interest in RHB Securities Vietnam Company Ltd.
Public Bank said in a filing with Bursa Malaysia Securities Bhd, the acquisition will allow PBVN to expand its service offerings in Vietnam to include Securities trading services.
PBVN has been operating in Vietnam since 1992 and currently has 40 branches that are strategically located throughout Vietnam.
PBVN intends to leverage on its existing client base to grow the securities trading business.
The proposed acquisition is also expected to further strengthen the presence of Public Bank and its subsidiaries in Vietnam as well as provide synergy to its Indo-China operations, given that the Public Bank group has an existing securities trading arm in Cambodia, namely Campu Securities Plc.
Campu Securities is a a wholly-owned subsidiary of Cambodian Public Bank Plc, which in turn is a wholly-owned subsidiary of Public Bank.
Both Bank Negara Malaysia and State Bank of Vietnam have approved the proposed acquisition.
The proposed acquisition is expected to be completed in the second quarter of 2024.