Friday, September 30, 2011

CIMB up in early trade on buying 70% stake in Thai stockbroking firm

KUALA LUMPUR: ''CIMB Group Holdings shares advanced on Friday, Sept 30'' in line with the positive overall positive sentiment on Bursa Malaysia and after the banking group said it was buying a 70% stake in Thailand stockbroking firm SICCO Securities Public Company Ltd (SSEC).

At 9.25am, CIMB added six sen to RM6.94 with 965,700 shares done.

CIMB is buying the stake in SSEC from the Siam Industrial Credit Public Company Limited (SICCO) for RM78.43 million cash.

In a statement Thursday, Sept 29, CIMB said it had entered into a conditional share sale and purchase agreement with SICCO to acquire SSEC.

It said SSEC was a publicly listed stockbroking company with 13 branches in Thailand and employed 269 staff.

CIMB said the acquisition would be undertaken via its wholly-owned indirect subsidiary, CIMB Securities International Pte Ltd (CSI).

The banking group said that under Thai laws, upon completion of the proposed acquisition, CSI would be required to conduct a mandatory tender offer to acquire all the remaining shares in SSEC that it did not already own.


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