RHB Bank to see minimal impact from stake in Vietnam Securities
RHB Bank’s board of directors announced on Bursa Malaysia that wholly-owned subsidiary RHB Investment Bank had on February 9, 2018 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 per cent equity interest in Vietnam Securities.
The acquisition comprised 6.885 million existing common shares of VND10,000 each in Vietnam Securities for a purchase consideration of VND121.63 billion (equivalent to approximately US$5.365 million or RM21.285 million) to be satisfied wholly in cash.
According to AmInvestment Bank Bhd (AmInvestment Bank), earnings accretion from the deal to RHB Bank is expected to be minimal for the additional 51 per cent stake.
“As the acquisition cost is not substantially large, the impact to the group’s capital will be minimal,” the research firm said.
AmInvestment Bank thus maintained its forecasts, with core net profit for financial year 2018 forecast (FY18F) at RM2.23 billion and FY19F at RM2.46 billion
The research firm also kept its ‘buy’ call on the stock with an unchanged fair value of RM6.00 per share based on FY18 price to book value (P/BV) of one-fold supported by an return on equity (ROE) of 9.1 per cent.
Source: Borneo Post Online