DBS To Complete Acquisition Of 60% Of
Vickers Ballas On September 12, 2001
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Merger creates an Asian securities powerhouse,
integration to be completed in October
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Greg Seow To Be Appointed Executive Chairman
Of New DBS Vickers Board
SINGAPORE, AUG 27 - DBS Bank today announced that it would complete
its acquisition of Vickers Ballas on September 12, 2001. Integration
is already in progress and will be completed in October 2001. The
new merged entity, DBS Vickers Securities, will pave the way for
the creation of an Asian securities powerhouse.
Vickers Ballas will be de-listed from the Singapore Exchange and renamed DBS Vickers Securities Holdings (DBS Vickers Securities). Each Vickers Ballas shareholder will be paid a cash consideration of $0.90 a share on or before September 21, 2001. Singapore Technologies Private Limited will retain a 40% stake in the new entity.
Philippe Paillart, DBS Chief Executive said: "DBS Vickers Securities offers DBS a strategic thrust towards our goal of offering enhanced products and services for our retail and institutional customers. The combination of the respective strengths of DBS and Vickers Ballas, also positions us as one of the most formidable securities houses in Asia. Going forward, we will focus on maximising wealth creation opportunities, enhancing securities advice and transaction capabilities for all our retail and institutional customers," said Paillart.
Vickers Ballas' corporate finance team will join the DBS' Investment Banking team, bringing together Singapore's market leaders in IPO issuance, debt capital markets, mergers and acquisitions, loan syndication and specialised financial solutions.
DBS Bank and Singapore Technologies Private Limited will appoint a new Board of Directors for DBS Vickers Securities. Greg Seow, Head of DBS Wealth Management Group, has been named the Executive Chairman-designate of the new 7-member DBS Vickers Securities Board. Raymond Lim, Managing Director of DBS Securities who will be joining Temasek Holdings as Managing Director, will remain as an independent director of the Board. Stephen Lee, Chairman of Singapore's Trade Development Board and President of Singapore National Employers' Federation will be the other independent director of the Board.
The other members of the Board will be:
Edmund Koh, Head, Consumer Banking, Singapore, DBS Bank
Eric Ang, Co-Head, Investment Banking, DBS Bank
Gan Chee Yen, Group Financial Controller, Singapore Technologies Pte Ltd
Ng Boon Yew, Corporate Advisor, Singapore Technologies Pte Ltd
Paillart said: "Our Board will bring together a wealth of experience and knowledge of banking and finance in Singapore and the region. Collectively, their astute sense of the Asian banking scene will be critical in identifying and maximising the potential and value of opportunities available to DBS Vickers Securities. This will ultimately add to enhancing value to our shareholders."
"We are also pleased that Raymond has agreed to continue to serve on the Board as an Independent Director. He has been instrumental in transforming DBS' securities business with the acquisition of Vickers Ballas, our joint venture with TD Waterhouse and the SGX processing consortium. His departure is a loss to DBS and we wish him success in his broader role at the national level with Temasek Holdings," added Paillart.
The integration of the DBS Securities and Vickers Ballas' operations has already started and spans simultaneously in Singapore, Hong Kong, Thailand, Philippines, Indonesia, China, UK and the US.
"DBS Vickers Securities has the capability to link origination, outstanding research, as well as retail distribution capabilities to service a wide range of institutional and private investors. It is a distinct competitive advantage for us as very few companies in the region will be able to match these capabilities," said Seow.
"The integration teams from DBS Securities and Vickers Ballas have been working cohesively as a single unit to ensure integration is implemented seamlessly across the region. By this October, we will be able to present a single customer interface of DBS Vickers Securities to our customer and business partners. This is exactly eight months after our announcement on our intent to merge. To complete this complex project within such short timeframe following the legal transaction date in all our eight regional markets is indeed a remarkable feat by our integration team," Seow added.
DBS Securities has been in a building phase in the last 12 months, starting with its proposed acquisition of Vickers Ballas in February, to create one of the largest retail and institutional advisory securities brokerage in Singapore and the region. This was followed by an agreement, in March, with Singapore Exchange IT Solutions and OCBC Securities to form a joint venture company to provide securities processing and settlement service to the securities industry in Asia.
In June, DBS announced a 50-50 joint venture with the global online financial-services company, TD Waterhouse, to provide self-directed investors in Asia, with a full range of world-class investment services from more countries, through more channels, and in the shortest amount of time.
As separately announced by Vickers Ballas today, there has been progress in the negotiations for the disposal of its structured finance business (the last outstanding condition to the completion of the acquisition). In view of this, DBS Bank had agreed to waive the condition and proceed to complete the acquisition.
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