KUALA LUMPUR (June 29): RHB Banking Group today confirmed that it is disposing of its stockbroking businesses in Singapore to Phillip Securities Pte Ltd.

The group said in a statement that its wholly-owned subsidiary, RHB Investment Bank Bhd, has signed an agreement to dispose of its 100% stake in RHB Securities Singapore Pte Ltd (RHBSS) to Phillip Securities, the largest non-bank backed securities firm in Singapore.

As part of the transaction, it said RHB 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 Bhd.

The Edge Singapore had reported on June 3 that Phillip Securities was in talks to buy RHBSS.

In its statement today, RHB said the transaction is subject to the approvals of the relevant regulatory authorities, and is expected to be completed in the third quarter of 2020.

RHB Banking Group managing director Datuk Khairussaleh Ramli said the internal transfer of the capital markets businesses from RHBSS to RHB Bank Singapore will enable the group to provide a one-stop solution for its corporate clients, and serve its 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,” said Khairussaleh.

He added: “The proposed disposal of our Singapore stockbroking business to Phillip Securities 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 our corporate clients to have access to a comprehensive suite of capital markets and financing solutions.”