KUALA LUMPUR: CIMB Group Holdings Bhd’s wholly-owned subsidiary CIMB Group Sdn Bhd (CIMBG) has completed the sale of 24.99% and 25% of its shareholding in CGS-CIMB Securities International Pte Ltd (CSI) and CGS-CIMB Holdings Sdn Bhd (CCH), respectively, to China Galaxy International Financial Holdings Ltd (CGI).
In a filing with Bursa Malaysia yesterday, it said the completion is upon receiving relevant regulatory approvals.
CSI and CCH are the holding companies of the group’s stockbroking joint venture (JV) with China Galaxy Securities (CGS), known as CGS-CIMB Securities.
“With the completion of the sale, CIMB Group’s interest in CSI and CCH will reduce from 50% and 50% to 25.01% and 25% respectively and CGI’s interest will correspondingly increase to 74.99% and 75%,” it said.
In 2018, CIMB Group entered into a 50:50 JV with CGS to operate a regional stockbroking business in Asia.
The JV had included built-in mechanisms to alter the shareholdings of the parties via call or put options. The call option to buy the additional stake was exercised by CGI and resulted in this change in shareholding.
The existing business collaboration between CIMB Group and CGS-CIMB Securities remains and will be operating as usual. Both parties will continue to harness the benefits of this synergistic partnership to deliver seamless cash equities and stockbroking platform to its clients regionally.
The partnership is in line with CIMB Group’s strategic direction to collaborate with the right partners to complement its service offerings and products, it added. — Bernama