ID :
156160
Thu, 01/06/2011 - 15:54
Auther :
Shortlink :
https://oananews.org//node/156160
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MAYBANK TO EMERGE TOP FIVE BROKER IN ASEAN VIA ACQUISITION OF SINGAPORE BROKERAGE FIRM
KUALA LUMPUR, Jan 6 (Bernama) -- Maybank will emerge as a top five broker in
Asean via its proposed acquisition of 44.6 per cent in Singapore-based brokerage
firm, Kim Eng Holdings Ltd, for RM1.9 billion (S$798 million).
The proposed acquisition via its unit, Aseam Credit Sdn Bhd of S$3.10 per share,
will accelerate the banking group's vision to position itself as a regional
financial services leader in Asean.
It entered into conditional sale and purchase agreements with Ronald Anthony Ooi
Thean Yat and Yuanta Securities Asia Financial Services Ltd for the acquisition
of 15.4 per cent and 29.2 per cent stakes, respectively, in Kim Eng.
Maybank will also emerge as the single largest shareholder in Kim Eng, which has
strong market positions in stockbroking and an investment banking presence in
Singapore, Thailand, Indonesia and the Philippines.
It also has a growing presence in Hong Kong, Vietnam, New York, London and India.
Maybank has a strong commercial banking presence in Asean but its
stockbroking and investment banking capabilities are currently limited to Malaysia
only.
Kim Eng in contrast, has a strong stockbroking, distribution and investment
banking capabilities across Asean, but it is not bank-backed.
As of Sept 30, 2010, Kim Eng's total assets and shareholders' equity amounted to
S$2.697 billion and S$938 million, respectively.
Upon completion of the acquisition, Maybank will be required to make a mandatory
general offer for the remaining 55.4 per cent shares in Kim Eng, with an
intention to privatise the company.
The total consideration for the acquisition of 100 per cent of Kim Eng would
amount to S$1.79 billion (RM4.26 billion).
The proposed transaction represents an acceleration of Maybank's investment
banking and equities platform in Asean, addressing an important gap in Maybank's
footprint, said Maybank Chairman Megat Zaharuddin Megat Mohd Nor in a statement
Thursday.
"Kim Eng gives us the immediate platform to aggressively build up our global
wholesale banking capabilities in Asean and beyond.
"Immediately, Kim Eng, gives us an entry into Thailand," he said.
As for the basis of arriving at the purchase consideration, the
price-to-book multiple of 19.1 times and 1.91 times is based on the
consideration price per Kim Eng share of S$3.10.
This is a 18.3 per cent premium to the five-day volume-weighted average market
price of Kim Eng shares of S$2.62 up to and including Jan 5, 2011.
The proposed acquisition is estimated to be completed by end May this year and
it will not have any material effect on the earnings of the group for the
financial year ending June 30, 2011, but contribute positively in the subsequent
financial years.
The gearing of Maybank will increase by the level of the external
funding to be obtained, if any, pursuant to the proposed acquisition.
Maybank shares were suspended from trading Thursday from 9am-5pm and will resume
Friday at 9am. It was last quoted at RM9.01. (US$1=RM3.07)
-- BERNAMA
Asean via its proposed acquisition of 44.6 per cent in Singapore-based brokerage
firm, Kim Eng Holdings Ltd, for RM1.9 billion (S$798 million).
The proposed acquisition via its unit, Aseam Credit Sdn Bhd of S$3.10 per share,
will accelerate the banking group's vision to position itself as a regional
financial services leader in Asean.
It entered into conditional sale and purchase agreements with Ronald Anthony Ooi
Thean Yat and Yuanta Securities Asia Financial Services Ltd for the acquisition
of 15.4 per cent and 29.2 per cent stakes, respectively, in Kim Eng.
Maybank will also emerge as the single largest shareholder in Kim Eng, which has
strong market positions in stockbroking and an investment banking presence in
Singapore, Thailand, Indonesia and the Philippines.
It also has a growing presence in Hong Kong, Vietnam, New York, London and India.
Maybank has a strong commercial banking presence in Asean but its
stockbroking and investment banking capabilities are currently limited to Malaysia
only.
Kim Eng in contrast, has a strong stockbroking, distribution and investment
banking capabilities across Asean, but it is not bank-backed.
As of Sept 30, 2010, Kim Eng's total assets and shareholders' equity amounted to
S$2.697 billion and S$938 million, respectively.
Upon completion of the acquisition, Maybank will be required to make a mandatory
general offer for the remaining 55.4 per cent shares in Kim Eng, with an
intention to privatise the company.
The total consideration for the acquisition of 100 per cent of Kim Eng would
amount to S$1.79 billion (RM4.26 billion).
The proposed transaction represents an acceleration of Maybank's investment
banking and equities platform in Asean, addressing an important gap in Maybank's
footprint, said Maybank Chairman Megat Zaharuddin Megat Mohd Nor in a statement
Thursday.
"Kim Eng gives us the immediate platform to aggressively build up our global
wholesale banking capabilities in Asean and beyond.
"Immediately, Kim Eng, gives us an entry into Thailand," he said.
As for the basis of arriving at the purchase consideration, the
price-to-book multiple of 19.1 times and 1.91 times is based on the
consideration price per Kim Eng share of S$3.10.
This is a 18.3 per cent premium to the five-day volume-weighted average market
price of Kim Eng shares of S$2.62 up to and including Jan 5, 2011.
The proposed acquisition is estimated to be completed by end May this year and
it will not have any material effect on the earnings of the group for the
financial year ending June 30, 2011, but contribute positively in the subsequent
financial years.
The gearing of Maybank will increase by the level of the external
funding to be obtained, if any, pursuant to the proposed acquisition.
Maybank shares were suspended from trading Thursday from 9am-5pm and will resume
Friday at 9am. It was last quoted at RM9.01. (US$1=RM3.07)
-- BERNAMA
