SBI Phnom Penh Securities Co Ltd and Cambodian Capital Securities Co Ltd have signed agreements to combine their Cambodia operations, the companies said yesterday.

SBI Phnom Penh is unit of Japanese SBI Holdings and a licensed underwriter in Cambodia. Cambodian Capital, a joint venture between Royal Group and Lotus Capital, is a licensed brokerage firm, as well as a corporate advisory firm in the Kingdom.

“The combination creates a platform that is able to provide clients with world class investment banking services in Cambodia, including corporate finance advisory, equity capital market advisory, underwriting, brokerage and institutional research,” the companies said in a statement.

Transactions for the combined company, SBI Royal Securities Co Ltd, are expected to close no later than November, Eiichiro So at SBIPP said yesterday.

No financial details of the deal were given by either SBIPP or Cambodia Capital.

The newly formed company plans to launch a private equity fund of up to US$50 million by the end of the year, Eiichiro So said.

The fund, seeded by parent companies Royal Group of Companies and SBI Holdings, will focus on investment in Cambodian telecoms and mobile companies, he said.

The two merging companies’ experience in business operations will differentiate itself from other private equity funds in the country, he said.

“We are not only an investment company, we are also an operating company,” Eiichiro So said.

“We would like to make business through the fund using knowhow from Japan.”

The combination will help the two companies more effectively capitalise on investment in the Kingdom, Yoshitaka Kitao, founder and CEO of SBI Holdings, said in a statement yesterday.