RHB Banking Group to exit asset management business in Indonesia

RHB Banking Group to exit asset management business in Indonesia
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KUALA LUMPUR (July 26): RHB Investment Bank Bhd's subsidiary PT RHB Sekuritas Indonesia is disposing of its investment management services to Allianz Global Investors Asia Pacific Ltd (AllianzGI) and PT Asuransi Allianz Life Indonesia.

In a statement today, RHB Banking Group said RHB Sekuritas Indonesia will sell its entire 98.62% equity interest and 1% equity interest in PT RHB Asset Management Indonesia (RHBAMI) to AllianzGI and Allianz Life Indonesia respectively. However, it did not disclose the transaction price.

It said RHB Sekuritas Indonesia has entered into a conditional share purchase agreement (SPA) with AllianzGI and Allianz Life Indonesia for the proposed disposal of RHBAMI.

The proposed transaction is expected to be completed in the fourth quarter of 2021 and is subject to conditions precedent of the conditional SPA, including the approval by the Indonesian Financial Services Authority (Otoritas Jasa Keuangan).

"RHBAMI has served the group's Indonesian customers over the past 12 years, and maintained assets under management of US$480 million as of December 2020.

"The decision is consistent with the group's FIT22 strategy (2018-2022) to focus on its strengths and ability to compete effectively, whereby RHB Banking Group will continue to build its stockbroking and selective investment banking business in Indonesia," said RHB.

RHB Banking Group managing director and chief executive officer Datuk Khairussaleh Ramli said Indonesia remains a key market driver and an important part of the group's regional footprint, where RHB has been in operations for over 12 years.

"Existing clients of RHBAMI will benefit from this corporate exercise by having access to an extensive suite of investment products and services, as well as regional and global investment expertise and research capabilities through the AllianzGI network.

"Meanwhile, we will focus on enhancing and growing our stockbroking and investment banking business in Indonesia through RHB Sekuritas Indonesia by investing in core capabilities to drive our business growth," he said.

Shares in RHB Bank Bhd closed five sen or 0.97% lower at RM5.13 today, valuing the banking group at RM20.87 billion.

Kang Siew Li