Bank Tiara, HLG Capital to buy securities house

JAKARTA (JP): Jakarta-based Bank Tiara Asia and HLG Capital Berhad (HLG Capital) of Malaysia have agreed to purchase PT Intisekuriti Investama, an Indonesian securities house.

Under the agreement signed Monday, both companies will share the company's capital equally. The purchase agreement includes a seat on the Jakarta Stock Exchange and is conditional upon regulatory approval.

PT Intisekuriti Investama is involved in brokerage, securities trading, corporate finance and underwriting services.

Bank Tiara's president, Hendrick Kolonas, said the acquisition was part of the bank's strategy to expand its services to its corporate and retail clients.

"The joint venture with Bank Tiara represents our first business partnership in Indonesia. We see Indonesia as a market with great potential to expand our institutional and retail markets," said HLG Capital's group managing director, Robert Yeoh.

Bank Tiara, 51 percent owned by Ometraco Corporation, is involved in consumer products, infrastructure, and financial services. It is listed on the Jakarta and Surabaya stock exchanges.

HLG Capital Berhad, a subsidiary of the Malaysian conglomerate Hong Leong Group, is involved in investment banking activities, including stockbroking, capital markets, futures trading and fund management. It is listed on the Kuala Lumpur Stock Exchange. (jsk)