Public Bank has announced its acquisition of RHB's Vietnam Stockbroking Business for a cash consideration of 374 billion Vietnamese Dong ($15.2 million). This move is in line with Public Bank's growth strategies to expand in Vietnam and is expected to have a positive impact on future earnings.
Expansion into Vietnam Market
The proposed acquisition involves obtaining a 100% stake in RHB Securities Vietnam, providing Public Bank with synergy for its Indo-China operations. Public Bank already operates a securities trading arm, Campu Securities, in Cambodia, making this acquisition a strategic fit for further growth in the region.
RHB's Strategic Focus
On the other hand, RHB's decision to dispose of its stake in RHB Securities Vietnam Company Ltd. and exit Vietnam's stockbroking and securities market is part of its strategy to strengthen RHB Investment Bank's operations in markets where it has a more established presence. Following the disposal, RHB anticipates gaining approximately MYR29.15 million ($6.1 million).
Completion Timeline
The deal is scheduled to be completed in the second quarter of this year, marking an important step for both Public Bank and RHB in their respective business strategies.
More Articles
All Rights Reserved © 2024
Post a comment