CIMB bank group CEO Tengku Datuk Seri Zafrul Aziz during the result..
KUALA LUMPUR: China Galaxy International Financial Holdings Ltd (CGI) will take a 50% stake in CIMB Securities International Pte Ltd (CSI), CIMB’s ex-Malaysia stockbroking business, for S$167mil (RM515.8mil).
In a statement, CIMB Group
Holdings Bhd said its wholly-owned subsidiary CIMB Group Sdn Bhd and the China Galaxy Securities Co Ltd unit had inked a conditional share purchase agreement on Tuesday to formalise their strategic partnership across CIMB’s stockbroking business.
China Galaxy Securities Group, one of the largest Chinese securities firms, will become CIMB’s partner in the institutional and retail brokerage, equities research and associated securities businesses across Indonesia, Singapore, Thailand, Hong Kong, South Korea, India, the UK and the United States.
CIMB group chief executive Tengku Datuk Seri Zafrul Aziz said: “This is a momentous occasion and a landmark deal for both CIMB and China Galaxy Securities Group as it heralds the embracing of a new paradigm for the stockbroking business.
“CIMB’s stockbroking business will effectively be repositioned as a pure play broker with the client base of a universal Asean bank.”
He added that it would continue to offer the full suite of investment banking and capital markets services to its clients, supplemented by the extensive equities distribution platform and research coverage of the joint venture.
“The partnership with China Galaxy Securities Group is a natural fit and we look forward to realising the great synergies of the joint venture, which also bodes well for the future expansion of our partnership,” Tengku Zafrul said.
Following the signing of the ex-Malaysia share purchase agreement, the parties will work towards obtaining the necessary regulatory approvals with a target to complete by the fourth quarter of 2017.
CIMB said the parties were also in discussions with respect to the Malaysia stockbroking business.
The two parties signed a heads of terms in October last year to explore a strategic partnership in the stockbroking business.
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