Alliance Investment Bank acquires Hwang-DBS Vickers Research

03 April 2014

Alliance Investment Bank Berhad (AIBB), a wholly-owned subsidiary of the Alliance Bank Malaysia Berhad (“Alliance Bank” or the “Bank”) announced today that it has entered into a conditional Share Sale & Purchase Agreement with Hwang-DBS Malaysia Berhad (HDBS) to acquire 51% equity interest in HwangDBS Vickers Research Sdn Bhd (HDBSV).

The acquisition enables AIBB to establish a joint venture for research with DBS Vickers Securities Limited (DBS Vickers), Singapore, a subsidiary of DBS Group.

"This is an opportune moment which will prove to be advantageous for both AIBB and DBS Vickers’ clients," said Sng Seow Wah, Group Chief Executive Officer of Alliance Bank. The acquisition will see a merging of expertise and knowledge of both Research House teams to serve their institutional and retail clients better.

"With the establishment of this joint venture in equities research, our research capabilities will be enhanced as we can now provide extensive coverage of both the Malaysian equities listed on Bursa Malaysia as well as regional equities. Concurrently, DBS Vickers’ clients abroad will have access to the research on the Malaysian equities, as well as execute their trades on Bursa Malaysia through AIBB," explained Sng.

"With the continuing growth of the ASEAN Trade Link, it is vital that both our clients (AIBB and DBS Vickers) be afforded the best insights into the rapidly changing equities market to enable them to make informed decisions about their financial portfolios."

Upon the completion of the acquisition, the entire business and operations of Alliance Research Sdn Bhd, a wholly-owned subsidiary of AIBB, will be transferred to and integrated into HDBSV which will be renamed AllianceDBS Research Sdn Bhd.

The acquisition comprises 1,275,000 ordinary shares of RM1.00 each fully paid for a total cash consideration of RM393,945. The entire acquisition exercise is expected to be completed in the second quarter of 2014. The purchase consideration was arrived at on a willing buyer willing seller basis after taking into consideration the aggregate net assets of HDBSV which amounted to RM772,441 based on its audited financial statements for the financial year ended 31 July 2013.

The acquisition is not expected to have any material effect on the net assets per share, earnings per share and gearing of Alliance Financial Group Berhad for the financial year ending 31 March 2015.

HDBSV has an authorised share capital of RM5,000,000 divided into 5,000,000 ordinary shares of RM1.00 each and an issued and paid-up share capital of RM2,500,000 comprising 2,500,000 ordinary shares of RM1.00 each fully paid. DBS Vickers Securities Holdings Pte Ltd remains HDBSV’s 49% shareholder.