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CIMB Group buys Jupiter Securities for RM55m

CIMB Group buys Jupiter Securities for RM55m

KUALA LUMPUR: CIMB Group Holdings Bhd is expanding its stockbroking operation as it purchases an entire stake in Jupiter Securities for RM55 million. CIMB Group said it has entered into a sale and share agreement with a conditional share purchase agreement with the shareholders of Jupiter Securities for the proposed acqusition. The banking group said the proposed acquisition is a strategic initiative in connection with its proposed partnership with China Galaxy International Financial Holdings Ltd, wherein Jupiter Securities will be the platform for the partnership’s Malaysia operations. “The completion of the proposed acquisition is subject to among others, approval from the relevant regulatory authorities,” it said in its filing to Bursa Malaysia. China Galaxy International is a subsidiary of China Galaxy Securities Co Ltd.

CIMB Group said the purchase consideration was arrived at after taking into consideration, among others, the consolidated net assets of Jupiter Securities and the realisable benefit of the unutilised tax losses and unabsorbed capital allowances carried forward of Jupiter Securities and its subsidiaries. “The purchase consideration is subject to completion audit adjustment, if any,” it said. Jupiter Securities is a subsidiary of Olympia Industries Bhd. The subsidiaries of Jupiter Securities are JS Nominees (Tempatan) Sdn Bhd, JS Nominees (Asing) Sdn Bhd, Jupiter Equities Sdn Bhd and Jupiter Research Sdn Bhd.