Malaysia's RHB Bank has received the approval from the State Securities Commission of Vietnam (SSC) for its proposed acquisition of the remaining 51% equity interest in VSEC for VND121.63 billion (US$5.20 million).
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The approval by Vietnam SSC is subject to two conditions, namely the proposed acquisition must be completed within 90 days from the date of approval, failing which the approval shall lapse, and VSEC shall make the necessary reporting and announcement in relation to the transaction in accordance with the relevant laws in Vietnam.
On February 9, RHB Bank announced that its wholly-owned subsidiary RHB Investment Bank entered into a conditional share purchase agreement with Chu Thi Phuong Dung, Truong Lan Anh and Viet Quoc Insurance Broker Joint Stock Company for the acquisition of the remaining 51% equity interest in VSEC comprising 6.88 million existing common shares for VND121.63 billion (US$5.20 million) in cash.
Upon completion of the proposed acquisition, VSEC will become a wholly-owned subsidiary of RHB Investment Bank.
VSEC was established in December 2006 and commenced operations in March 2007. RHB Bank was granted a license to open its representative office in Ho Chi Minh City in 2008.
The banking group is the fourth largest fully-integrated financial services group in Malaysia, with seven core businesses: group retail banking, group business and transaction banking, group wholesale banking, RHB Singapore, group Shariah business, group international business and group insurance.
RHB Bank's regional presence span across ten markets including Malaysia, Singapore, Indonesia, Thailand, Brunei, Cambodia, Hong Kong, China, Vietnam, Laos and Myanmar.
