KUALA LUMPUR, June 6 (Reuters) - Malaysia’s second-biggest lender, CIMB Group Holdings Bhd, on Tuesday said it will sell a 50 percent stake in its international brokerage business to China Galaxy Securities for S$167 million ($120.99 million).
CIMB had said in October last year that it was in talks with China Galaxy to set up a 50-50 brokerage joint venture.
CIMB Securities International Pte Ltd, in which China Galaxy is taking the stake, is the Malaysian bank’s cash equities business comprising institutional and retail brokerage, equities research and associated securities businesses in Indonesia, Singapore, Thailand, Hong Kong, India, South Korea, U.K. and the United States.
The banks are also in talks about CIMB’s stockbroking business in Malaysia, it said, though no details were disclosed on the structure of a possible deal.
The joint venture is “poised to further capitalise on China-outbound M&As, China-ASEAN cross-border investments and infrastructure funding,” CIMB said.
The parties will work towards obtaining the necessary regulatory approvals with a target to complete by the fourth quarter. ($1 = 1.3803 Singapore dollars) (Reporting by Liz Lee; Editing by Sunil Nair)