KL brokerage buys stake in Bank Niaga
KL brokerage buys stake in Bank Niaga
KUALA LUMPUR (AFP): Malaysia's top brokerage Rashid Hussain
Bhd (RHB) yesterday said it was buying a 20 percent stake in
Indonesia's Bank Niaga and raising its stake to 63 percent in
local brokerage Straits Asset Holdings Sdn Bhd.
RHB said in a statement to the Kuala Lumpur Stock Exchange
that it had signed an agreement to acquire the 20 percent stake
in Bank Niaga for Rp 234.47 million (US$98.8 million).
It is acquiring a total of 37.82 million shares at Rp 6,200
per share of Bank Niaga, which was established in Indonesia in
September 1955 and is listed on the Jakarta and Surabaya stock
exchanges.
The Indonesian commercial bank has a network of 41 branches, a
branch in the Cayman Islands and an agency office in Los Angeles.
RHB said the acquisition of the Bank Niaga stake, to be funded
by internal funds, would enable it to develop and make
significant business inroads into the Indonesian market.
RHB also announced it was acquiring from four vendors a
further 12 percent stake in Straits Asset Holdings for 33.494
million ringgit ($13.4 million), to increase its equity stake in
the brokerage to 63 percent.
RHB already holds a controlling 51 percent stake in Straits
Asset, which owns Straits Securites Sdn Bhd, a broking company in
southwestern Malacca state.
It is acquiring the additional 12 percent stake from vendors
S.R. Doshi, Tan Tian Tiok, Lee Siow Keng and Ismail Harith
Merican.
RHB said under an internal restructuring within its group, its
51 percent stake would be acquired by its investment company, DCB
Holdings Bhd.
It said in line with the restructuring, RHB group had offered
the 20 percent equity stake in Bank Niaga and the 12 additional
stake in Straits Asset to DCB Holdings at the same purchase price
plus holding and related costs to be satisfied by the issue of
new DCB shares to RHB at 8.11 ringgit a DCB share.
RHB stock closed 40 sen higher on the local bourse yesterday
at 18.90 ringgit, while DCB Holdings stock rose 15 sen to 9.15
ringgit.