Friday 29 Mar 2024
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KUALA LUMPUR (Dec 7): CIMB Group Holdings Bhd said it has disposed of another 24.99% and 25% of its shareholdings in CGS-CIMB Securities International Pte Ltd (CSI) and CGS-CIMB Holdings Sdn Bhd (CCH) respectively to China Galaxy Securities (CGS).

CSI and CCH are the holding companies of CIMB's stockbroking joint venture (JV) with CGS, known as CGS-CIMB Securities.

CIMB's wholly-owned unit CIMB Group Sdn Bhd completed the sale to China Galaxy International Financial Holdings Ltd (CGI), a unit of CGS, upon receiving relevant regulatory approvals, CIMB said.

The banking group, however, did not disclose the prices for the stake sales.

CIMB sold a 50% stake in CSI, its international stockbroking arm, to CGS back in 2018 for S$167 million as part of a JV arrangement to operate a regional stockbroking business in Asia. A Malaysian JV was also set up by taking over dormant stockbroking firm Jupiter Securities Sdn Bhd at the time.

According to the statement on the latest sale, CGI exercised a call option that was included in the initial JV agreement to buy the additional stake.

With the completion of the sale, CIMB Group's interest in CSI and CCH will each reduce from 50% to 25.01% and 25% respectively, while CGI's interest will correspondingly increase to 74.99% and 75%.

"The existing business collaboration between CIMB Group and CGS-CIMB Securities remains and will be operating as usual," CIMB said.

"Both parties will continue to harness the benefits of this synergistic partnership to deliver a 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.

Shares of CIMB Group settled up six sen or 1.15% to RM5.30, giving the banking group a market capitalisation of RM54.3 billion.

Edited ByLam Jian Wyn
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