SINGAPORE, 05 January 2024 – CGS-CIMB Securities recently announced that CGS International Holdings Limited (CGI) has completed its acquisition of CIMB Group Sdn. Bhd.’s (CIMB Group) remaining stake in the two parties’ joint venture.
According to a recent announcement from CGS-CIMB Securities, CIMB Group’s will now hold 25.01% stake in CGS-CIMB Securities International Pte. Ltd. (CSI) and CIMB Group 25% stake in CGS-CIMB Holdings Sdn. Bhd. (CCH), respectively. CSI and CCH are collectively referred to as “CGS-CIMB Securities”.
CGI is a subsidiary of China Galaxy Securities Co., Ltd. (CGS), the fourth largest securities firm in China with over 15 million customers. CGS is a subsidiary of Central Huijin Investment Co., Ltd., which is wholly owned by China Investment Corporation, the largest sovereign wealth fund in the world by assets under management.
Following the completion of the acquisition of the second call option, CGS-CIMB Securities is now wholly owned by CGI.
In 2018, CIMB Group and CGI entered into a partnership to operate a regional stockbroking business in Asia, through the sale of CIMB Group’s 50% stake in its stockbroking business to CGI. The sale incorporated call options for CGI to acquire CIMB Group’s stake in CGS-CIMB Securities over a period of time. CGI had exercised its first call option and completed the acquisition of the 24.99% and 25% stake in CSI and CCH respectively from CIMB Group in December 2021.
CGS-CIMB Securities will continue to offer a comprehensive suite of customer-centric services and products such as equities trading, leveraged products, wealth management, investment banking, equities research, Shariah-compliant financing, fixed income, currency and commodities, structured products and prime brokerage services.
Ms Carol Fong, Group CEO of CGS-CIMB Securities, said: “Since 2018, CGS and CIMB Group have partnered to grow CGS-CIMB Securities into one of the leading integrated financial service providers in Asia. We sincerely thank CIMB Group for its contribution to the business and will continue to leverage our strong relationship built over the years to explore other collaboration opportunities. Moving forward, we will strengthen our unique position as the nexus for China-ASEAN relations and the gateway to Asia, and leverage our CIC and CGS parentage to connect our clients with more investment opportunities in the region, particularly in China.”
CGS International Holdings Limited was previously known as China Galaxy International Financial Holdings Limited. The name change was effective 8 December 2022.
Post-completion, CGS-CIMB Securities and CIMB Group will work closely to ensure minimal disruptions in service to its customers and clients.