SINGAPORE: CGS International Holdings fully acquired CGS-CIMB Securities on Dec 29, after CIMB Group’s remaining stake in their joint venture (JV), The Edge Singapore reports.
CGS International now stands as the sole proprietor of CGS-CIMB Securities International (CSI) and CGS-CIMB Holdings (CCH), collectively known as CGS-CIMB Securities. As a subsidiary of China Galaxy Securities, it has successfully secured CIMB Group’s 25.01% stake in CSI and 25% stake in CCH.
China Galaxy Securities, one of China’s largest securities firms boasting over 15 million customers, is a subsidiary of Central Huijin Investment, wholly owned by China Investment Corporation—the country’s largest sovereign wealth fund managing a portion of its foreign exchange reserves.
Completing the acquisition marks a significant milestone as CGS-CIMB Securities is now wholly owned by CGS International. This development follows the completion of the second call option.
The journey towards full ownership began in 2018 when CIMB Group and CGS International forged a partnership to establish a regional stockbroking business in Asia. This collaboration included the sale of CIMB Group’s 50% stake in its stockbroking business to CGI.
The deal also includes call options, allowing CGS International to acquire CIMB Group’s stake in CGS-CIMB Securities. In Dec 2021, CGS International exercised its first call option, securing the 24.99% and 25% stake in CSI and CCH, respectively.
CGS-CIMB Securities is committed to maintaining its comprehensive suite of customer-centric services and products despite the change in ownership. These include equities trading, wealth management, investment banking, equities research, Shariah-compliant financing, fixed income, currency and commodities, leveraged products, structured products, and prime brokerage services.
Carol Fong, the CEO of CGS-CIMB Securities, expressed gratitude towards CIMB Group for their past contributions to the business. She 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.”
She added, “Moving forward, we will strengthen our unique position as the nexus for China-ASEAN relations and the gateway to Asia and leverage our China Investment Corporation and CGS parentage to connect our clients with more investment opportunities in the region, particularly in China.”/TISG