Tuesday 16 Jul 2024
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KUALA LUMPUR (March 27): CIMB Group Holdings Bhd is expecting to officially kick off its planned 50:50 strategic partnership in the stockbroking business with China Galaxy International Financial Holdings Ltd (CGIF) by the second quarter of 2017.

In a stock exchange filing today, CIMB said China Galaxy Securities Co Ltd, the parent of CGIF, had announced the passing of resolutions by its board of directors in connection with the proposed partnership through the Shanghai Stock Exchange and the Stock Exchange of Hong Kong on March 24, 2017.

"CIMB notes this positive development and will continue its discussions with China Galaxy International on the proposed partnership, with a target to execute the definitive agreements by 2Q17," the banking group said.

Under a heads of terms inked in October, CIMB and China Galaxy Securities would explore a strategic partnership in the stockbroking business comprising institutional and retail brokerage, equities research, and associated securities businesses, as well as to identify further areas of cooperation in markets where they operate.

On March 17, CIMB was reported to be planning to buy over stockbroking firm Jupiter Securities Sdn Bhd for RM50 million for its stockbroking licence, which it needed in order for its joint venture with China Galaxy Securities to commence operation in Malaysia.

On March 20, Olympia Industries Bhd confirmed it was planning to sell its stake in Jupiter Securities. On the same day, CIMB issued a statement saying it was 'engaging in exploratory discussions with stakeholders and various parties' to smoothen its partnership with China Galaxy Securities, as the proposed partnership was 'envisaged to involve multiple countries'.

CIMB's share price closed unchanged at RM5.62, valuing the group at RM50.2 billion.

 

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