CIMB expands stockbroking biz, buys Jupiter Securities for RM55m

New high for Dagang NeXchange Bhd

KUALA LUMPUR: CIMB Group Holdings Bhd is expanding its stockbroking business by buying Jupiter Securities for RM55mil which will be the platform for its partnership with  China Galaxy International Financial Holdings Ltd.

It said on Wednesday CIMB Group Sdn Bhd had signed a conditional share purchase agreement with the shareholders of Jupiter Securities to acquire the latter.

Jupiter Securities is a subsidiary of Olympia Industries Bhd which is involved in securities and acts as a stock broker. The subsidiaries of Jupiter Securities are JS Nominees (Tempatan) Sdn Bhd, JS Nominees (Asing) Sdn Bhd, Jupiter Equities Sdn Bhd and Jupiter Research Sdn Bhd.

CIMB said the purchase consideration was based on the consolidated net assets of Jupiter Securities and the realisable benefit of the unutilised tax losses and unabsorbed capital allowances carried forward of Jupiter Securities and its subsidiaries.

CIMB Group said the proposed acquisition was strategic in line with its proposed partnership with China Galaxy International Financial Holdings –  a subsidiary of China Galaxy Securities Co Ltd.

Jupiter Securities will be the platform for the partnership’s Malaysia operations.