Friday 24 May 2024
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KUALA LUMPUR (April 14): Two key personnel, leading a group of analysts and sales representatives from CGS-CIMB Securities, are moving to the newly established stockbroking unit of CIMB Group Holdings Bhd, according to sources.

Sources told The Edge that Ruzi Rani Ajith, who had left her position as the CEO and country head, Malaysia of CGS-CIMB Securities, will be spearheading the new stockbroking firm to be set up or to be acquired by CIMB.

“A number of them left CGS-CIMB this week. They have started to meet clients to introduce the new team,” said a source.

Another source revealed that Ivy Ng Lee Fang had also quit as the research head of CGS-CIMB, bringing with her a few equity research analysts, including Walter Aw Lik Hsin, Nagulan Ravi, Mohd Shanaz Noor Azam and Foong Choong Chen.

Others who followed suit include Liew Kuo Aun and Aaron Tan from the sales team, as well as Chong Chyi Ming, who was the head of social media.

New blood at CGS-CIMB

Meanwhile, sources also highlighted that Chehan Perera, the former research head of KAF-Seagroatt & Campbell Securities Sdn Bhd, has been appointed as the new head of business development at CGS-CIMB, and he is expected to take over Ng’s former role.

Besides that, Chong Tjen-San, the former director of equity research at Alliance DBS Research and former presenter at BFM, as well former Macquarie analyst Prem Jearajasingam, have also joined CGS-CIMB.

Citing sources, The Edge reported on April 7 that CIMB Investment Bank Bhd, had inked a deal earlier on the same day to acquire KAF Equities Sdn Bhd from KAF Investment Bank Bhd.

It is learnt that KAF Equities, formerly known as KAF-Seagroatt & Campbell, which is one of the oldest stockbroking firms in the country, could be renamed CIMB Securities Sdn Bhd.

CIMB Group already has a stockbroking business through CGS-CIMB Securities, its joint venture (JV) with China Galaxy Securities Co Ltd (CGS), one of China’s largest stockbrokers.

However, it is widely known that CIMB Group and CGS will soon be ending their equity partnership, as CGS is expected to exercise a call option to take full control of CGS-CIMB Securities.

The two parties may continue to collaborate in other ways.

As it stands now, CIMB Group’s equity interest in CGS-CIMB Securities is about 25%, with CGS holding about 75%.

Their JV is on two fronts — the regional stockbroking business and the Malaysian one.

Industry sources have indicated that CGS’ plan to acquire the remaining 25% in CGS-CIMB Securities is pending regulatory approval from China.

It is understood that CIMB Group is acquiring KAF Equities so that it will continue to have a Malaysian stockbroking business once it exits the JV.

However, it is worth noting that CIMB has yet to make any official announcement on the acquisition of KAF Equities.

Edited ByTan Choe Choe
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