Thursday, January 6, 2011

MAYBANK to buy Kim Eng for RM1.9b

Maybank through its wholly-owned subsidiary, Aseam Credit Sdn Bhd (ACSB), has proposed to acquire a 44.6 per cent stake in Kim Eng Holdings Ltd today at S$3.10 per share, amounting to S$798 million (approximately RM1.90 billion).

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.

Kim Eng is a leading stock broker in ASEAN with a top five position in Singapore, Thailand, Indonesia and the Philippines.
It also has a presence in global financial centres, including Hong Kong, London and New York.

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 Tan Sri Megat Zaharuddin Megat Mohd Nor in a statement today.

"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.

Meanwhile, Maybank , will finance its purchase of Singapore broker Kim Eng Holdings through a mix internal and external funds, Abdul Wahid Omar said on Thursday.

Wahid told a press conference that in addition to the US$1.4 billion purchase price for Kim Eng, Maybank may have to find an additional RM500 million (US$163 million)if required to launch an offer for the brokerages subsidiaries. - Bernama/Bloomberg 

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