KUALA LUMPUR (Aug 6): RHB Capital Bhd (RHBCap) has teamed up with Singapore-listed Silverlake Axis Ltd, a unit connected to Malaysian technology billionaire Goh Peng Ooi, to collaborate in software development.

In a filing with Bursa Malaysia, RHBCap said its wholly-owned unit RHB Finexasia.Com Sdn Bhd (RHB Finex) has entered into a subscription agreement with Silverlake International Capital Market Solution Ltd (Silverlake Capital), to subscribe for redeemable convertible preference shares of US$1 each (RCPS) at par in Digital Financial Lab Limited.

Under the agreement, RHB Finex and Silverlake Capital will each subscribe for 50% of RCPS in Digital Financial for RM10 million each.

RHBCap said the proposed subscription by RHB Finex will be financed by the latter’s internally-generated funds.

“The RCPS shall rank pari passu with the existing ordinary shares of US$1 each in Digital Financial in respect with the rights attached to the (existing) ordinary shares and shall be convertible at any time into ordinary shares at no extra cost,” RHBCap said.

“Through the proposed subscription, RHB Finex and Silverlake Capital will be able to collaborate and leverage on each other’s strength and areas of expertise in the software development area,” it added.

Digital Financial, incorporated in Bermuda as a private company limited, has an issued and paid up capital of US$10, comprising 10 ordinary shares of US$1 each as at Aug 6.

The company was set up with the intention to own and specialise in the development, licensing and maintenance of trading system software for the capital markets, said RHBCap.

However, RHBCap did not disclose the existing shareholders of Digital Financial.

Silverlake Capital, on the other hand, is principally engaged in the marketing of computer equipment and software, and providing system development and maintenance services.

A quick check with a website owned by Silverlake Japan Ltd — a wholly-owned subsidiary of Silverlake Axis, in which Goh owns a 66.39% stake as at Sept 22, 2014 — shows Silverlake Capital is part of the former’s global network of companies.

RHBCap (fundamental: 1.5; valuation: 2.1) fell 10 sen or 1.35% to RM7.30 today, giving it a market capitalisation of RM19.15 billion. Silverlake Axis, on the other hand, was unchanged at 95 Singapore cents, which gave it a market capitalisation of S$2.6 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)