By Ying Xian Wong
CIMB Group Holdings has completed the sale of its remaining stake in brokerage CGS-CIMB to China Galaxy Securities.
The Malaysian bank divested its 25.01% stake in CGS-CIMB Securities International and 25.0% stake in CGS-CIMB Holdings to CGS International Holdings, a subsidiary of China Galaxy, according to a late Friday filing.
The divestment is estimated to generate gross proceeds of approximately 780 million ringgit ($169.7 million) for CIMB, the bank said.
CIMB and CGS International Holdings set up a regional stockbroking joint venture in 2018, with both parties holding a 50% stake.
The agreement included put and call options for CGS International to acquire CIMB’s stake in the CGS-CIMB joint venture over time.
After previously acquiring 24.99% and 25% stakes in CGS-CIMB Securities International and CGS-CIMB Holdings, respectively, in December 2021, CGS International now has full 100% ownership of the regional stockbroking business, CIMB said.
Write to Ying Xian Wong at [email protected]
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