Malaysia's CIMB, China Galaxy Formalise Partnership In Stockbroking Business

KUALA LUMPUR, June 6 (Bernama) -- CIMB Group Holdings Bhd and China Galaxy Securities Co. Ltd have signed a share purchase agreement to formalise their strategic partnership across CIMB's stockbroking business. The agreement was signed through their subsidiaries, CIMB Group Sdn Bhd and China Galaxy International Financial Holdings Ltd (CGI). The partnership will see CIMB and China Galaxy Securities Group, one of the largest Chinese securities companies, becoming 50:50 shareholders in CIMB Securities International Pte Ltd (CSI). Group Chief Executive CIMB Group, Zafrul Aziz said the bank would continue to offer the full suite of investment banking and capital markets services to clients, supplemented by the extensive equities distribution platform and research coverage of the joint venture. "CIMB’s stockbroking business will effectively be repositioned as a pure play broker with the client base of a universal ASEAN bank. "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,” he said in a statement Tuesday. CIMB will receive a purchase consideration of S$167.0 million (RM515.0 million) from CGI for 50 per cent of its stake in CSI which is arrived at based on a multiple of 1.3 times of CSI’s consolidated net asset value of S$256.9 million as at Dec, 31, 2015. He said the parties would work towards obtaining the necessary regulatory approvals with a target to complete by the fourth quarter of 2017 and are also in discussions in respect of the Malaysia stockbroking business. CIMB Group Holdings Bhd is a Malaysian universal bank headquartered in Kuala Lumpur and operating in high growth economies in ASEAN. -- BERNAMA