PhillipCapital has bought over the stockbroking business of Alliance Investment Bank, and the two entities will form a strategic partnership to collaborate and offer their products and services to each other’s customers.
The acquisition was made via Phillip Futures Sdn Bhd, the derivatives broking arm of PhillipCapital in Malaysia. The transaction amount wasn’t disclosed.
This move follows Phillip Futures in Singapore winning its own stockbroking license, in a bid to expand its offerings to its customers and win over new ones. This license is separate from the one held by Phillip Securities, the main stockbroking arm of PhillipCapital.
Lam Choon Jin, executive director of Phillip Futures says this deal will let Phillip Futures expand its futures, options and contract for difference broking services to include stocks and exchange traded funds to investors in Malaysia.
Andy Lim, group managing director of PhillipCapital Malaysia, believes that the capital markets of Asia will present “tremendous” opportunities for investors.
“PhillipCapital global network’s strong focus on Asia puts us in a good stead to market Asia to the world. With its strategic importance of Asia, Malaysia has many unique investment opportunities to offer," he adds.
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Joel Kornreich, group CEO of Alliance Bank, calls the collaboration between PhillipCapital and Alliance Bank one that can “synergise” the strength of both companies, that can then offer an “unparalleled” investing experience in a broad range of products and services.
“With our combined experience in the brokerage industry, we believe our collaboration will bring about new innovations and greater quality of services to our clients,” he adds.
This deal, which has received conditional approval from the Bank Negara and Securities Commission, is expected to be concluded by July 2022.
