Upon successful completion of the transition, it will create Malaysia’s largest stock brokerage and investment bank by assets, with nearly 15% of the country’s brokerage business, said the firm.
Both firms, RHB Capital and OSK said that the deal will not result in job cuts and the combined business will employ approximately 4,000 people.
The integration of the banking business will assist RHB to enhance its footprint across Singapore, Vietnam, Thailand, Indonesia, Hong Kong, China and Cambodia.
RHB Capital group managing director Kellee Kam said that the group has plans to fetch minimum 10% of its annual revenues from international market.
As per the agreement, RHB Capital will pay MYR1.95bn ($620.2m), of which MYR147.5m will be in cash and 245 million new shares at MYR7.36 each for OSK Investment.
Credit Suisse advised RHB for the deal while Goldman Sachs was the investment banker to OSK.
