Aseam Credit, the wholly-owned subsidiary of Malayan Banking Berhad, has proposed to acquired a 44.6 per cent stake in Singapore stockbroker Kim Eng in a deal valued at S$798 million.

Kim Eng is a key player within the Asian retail broking space, making it a highly attractive asset for financial services firms looking to expand into major regional markets. Beyond Singapore, the stockbroker also has an established presence in Thailand, Indonesia, the Philippines, and Hong Kong.

Maybank has been bulking up its wealth management offering to capture a wider share of the affluent market, where direct equity investments have become increasingly important for both the growing onshore affluent numbers, as well as the offshore client base markets like Singapore.

In a recent survey by Datamonitor, direct equity investments were cited by Asia Pacific wealth managers polled as a key draw for new clients. In addition, equities are already a substantial part of the Singapore market and are expected to increase further as the number of high net worth individuals increase.

To facilitate the proposed takeover, Maybank has entered into conditional sale and purchase agreements with Ronald Anthony Ooi Thean Yat and Yuanta Securities Asia Financial Services for acquisition of 15.4 per cent and 29.2 per cent, respectively, in Kim Eng. Upon completion, the bank will be required to make a mandatory general offer for the remaining 55.4 per cent stake, with an intention to privatise.