Oversea-Chinese Banking Corp, Southeast Asia’s second-largest lender by assets, plans to buy a stake in the brokerage business of Malaysia’s KAF-Seagroatt & Campbell Bhd, a person with knowledge of the matter said.
Singapore-based OCBC aims to acquire 49 percent of the equities brokerage unit at a price equivalent to 1.3 to 1.4 times book value, said the person, who declined to be identified as the information is private. OCBC expects to complete talks with KAF-Seagroatt, which have been going on for more than a year, early in 2012, the person said.
The offer would follow UOB Kay-Hian Holdings Ltd’s purchase last week of Malaysian broker Innosabah Securities Bhd from Kretam Holdings Berhad. UOB Kay-Hian, a unit of Singapore- based United Overseas Bank Ltd, paid RM56.7 million for Innosabah, according to a stock exchange announcement.
KAF-Seagroatt jumped 11 percent at 3:28 p.m. local time in Kuala Lumpur trading, giving the company a market value of RM176 million. The Edge Financial Daily earlier reported that a Singapore bank is interested in buying the company’s broking business, without naming the suitor.
OCBC had no comment on the planned acquisition. KAF-Seagroatt Chairman Ahmad Kadis couldn’t be reached for comment today at his office. -- Bloomberg
Singapore-based OCBC aims to acquire 49 percent of the equities brokerage unit at a price equivalent to 1.3 to 1.4 times book value, said the person, who declined to be identified as the information is private. OCBC expects to complete talks with KAF-Seagroatt, which have been going on for more than a year, early in 2012, the person said.
The offer would follow UOB Kay-Hian Holdings Ltd’s purchase last week of Malaysian broker Innosabah Securities Bhd from Kretam Holdings Berhad. UOB Kay-Hian, a unit of Singapore- based United Overseas Bank Ltd, paid RM56.7 million for Innosabah, according to a stock exchange announcement.
KAF-Seagroatt jumped 11 percent at 3:28 p.m. local time in Kuala Lumpur trading, giving the company a market value of RM176 million. The Edge Financial Daily earlier reported that a Singapore bank is interested in buying the company’s broking business, without naming the suitor.
OCBC had no comment on the planned acquisition. KAF-Seagroatt Chairman Ahmad Kadis couldn’t be reached for comment today at his office. -- Bloomberg
