CGS to assume full control of CGS-CIMB Securities by January

CHINA Galaxy Securities (CGS) will have full control of CGS-CIMB Securities by January 2023, following a split between the brokerage’s 2 parent companies.

CGS-CIMB’s group chief executive officer Carol Fong, speaking said to The Edge Singapore on Wednesday (Sep 28), said that a call and put option has been put in place, but did not reveal the transaction value.

She told the newspaper that both parties are now finalising an agreement to continue collaborating in stockbroking.

CGS and Malaysia’s CIMB Group launched a regional stockbroking joint venture in January 2018. This was followed by a Malaysian stockbroking joint venture in July 2019, a 50:50 partnership between their wholly-owned units, CIMB Group Sdn Bhd and China Galaxy International Financial Holdings (CGI).

In December last year, CIMB pared its 50 per cent stakes in the joint ventures to 25.01 per cent in CGS-CIMB Securities, and 25 per cent in CGS-CIMB Holdings (the Malaysian joint venture). As a result, CGS’ stakes in the companies increased to 74.99 per cent and 75 per cent, respectively.