Jakarta, CNBC Indonesia – A subsidiary of RHB Investment Bank Bhd from Malaysia, PT RHB Sekuritas Indonesia, divested its investment management business (asset management) to Allianz Global Investors Asia Pacific Ltd (Allianz GI) and PT Asuransi Allianz Life Indonesia.
In an official statement, Tuesday (27/7), quoted by Theedgemarkets and The Star Malaysia, RHB Banking Group said RHB Sekuritas Indonesia will sell its 98.62% stake and 1% stake in RHB Asset Management Indonesia (RHBAMI) to Allianz GI and Allianz Life Indonesia, respectively.
However, management did not disclose the transaction price. Thus, RHB only has a securities business in Indonesia after the sale of this investment manager (MI) company.
In the statement, it was stated that RHB Sekuritas Indonesia had signed a conditional share purchase agreement (SPA) with Allianz GI and Allianz Life Indonesia for the planned disposal of shares of RHB Asset Management Indonesia.
The proposed transaction is expected to be completed in the fourth quarter of 2021 and is subject to conditional SPA precedent conditions, including approval by the Financial Services Authority (OJK).
RHBAMI has been serving group customers in Indonesia for the last 12 years, and managed assets under management as of December 2020 of US$ 480 million or equivalent to Rp 7 trillion (exchange rate of Rp 14,500/US$).
“This decision is in line with the FIT22 group’s strategy (2018-2022) to focus on strengths and ability to compete effectively, wherein RHB Banking Group will continue to build stockbroking and selective investment banking businesses in Indonesia,” said RHB.
FITT22 or Fund Our Journey, Invest To Win and Transform The Organization, is the company’s 5 year strategy.
RHB Banking Group Managing Director and Chief Executive Officer Datuk Khairussaleh Ramli said Indonesia remains a key market driver and an important part of the group’s regional footprint, where RHB has been operating for more than 12 years.
“RHBAMI’s existing clients will benefit from this corporate exercise by having access to a broad range of investment products and services, as well as regional and global investment expertise and research capabilities through the Allianz GI network,” he said.
“Meanwhile, we will focus on enhancing and growing our stockbroking and investment banking business in Indonesia through RHB Sekuritas Indonesia by investing in core capabilities to drive our business growth,” he said.
Shares in RHB Bank Bhd closed at 5 cents ringgit, or 0.97% lower at RM5.13 in Monday’s trading, with the RHB Group capitalization (commonly known as Rashid Hussein Bank) amounting to RM 20.87 billion or equivalent to Rp. 71 trillion (exchange rate of Rp. 3,423/RM).
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