Hwang-DBS to sell research outfit to Alliance Investment Bank

PETALING JAYA: Hwang-DBS (Malaysia) Bhd is planning to sell its 51% stake in research outfit HwangDBS Vickers Research Sdn Bhd (HDBSVR) to Alliance Investment Bank Bhd (AIBB) for RM393,945.
Both parties entered into a conditional share sale and purchase agreement for the disposal of 1.27 million RM1.00 shares each in HDBSVR.
Hwang-DBS Malaysia said the disposal price was on a "willing buyer-willing seller" basis after taking into consideration the net assets of HDBSV of RM772,441 as at July 31, 2013. It said that following the sale of HwangDBS Investment Bank Bhd to Affin Holdings Bhd, the company no longer requires research services.
AIBB is owned by the country's smallest banking group by assets, Alliance Financial Group Bhd (AFG). Both AFG and Hwang-DBS share a common shareholder in Singapore's DBS Group, a regional banking giant controlled by Temasek Holdings.
DBS Vickers Securities itself is a wholly-owned subsidiary of DBS Bank Ltd.
Hwang-DBS Malaysia said the disposal of the research outfit is not expected to have any material effect on the net assets per share, earnings per share and gearing of the group for the financial year ending July 31, 2014.
Following the sale to Affin, Hwang-DBS Malaysia will be left with just its money-lending, property-letting and investment holding operations.