CIMB acquires GK Goh to expand market
CIMB acquires GK Goh to expand market
The Jakarta Post, Jakarta
Malaysia's biggest investment bank, CIMB Bhd., plans to merge its
subsidiary PT CIMB Niaga Securities with PT GK Goh Indonesia
after it acquires the stockbroker company from Singapore-based GK
Goh Holdings Ltd.
CIMB chief executive Nazir Razak said on Monday the planned
merger would allow the two Indonesian securities firms to combine
operations in Indonesia.
CIMB would conclude the purchasing of GK Goh Holdings by June
at S$239.14 million (US$146 million), Nazir said.
With GK Goh Holdings operations in Singapore, Jakarta, Hong
Kong and London, the planned acquisition would improve CIMB's
exposure to capital markets and retail clients in those cities.
GK Goh Holdings currently controls 93.4 percent of shares in
PT GK Goh Indonesia, which is listed in the Jakarta and Surabaya
Stock Exchanges. The company, established in 1990, operates in
equities trading, securities underwriting, fixed income-broking
and asset management.
CIMB acquired a 51 percent stake in PT Niaga Sekuritas in
November and renamed it PT CIMB Niaga Securities. It operates in
equity broking, fixed income origination, underwriting and
trading, as well as corporate finance advisory. The other 49
percent stake is owned by PT Bank Niaga Tbk.
"We believe the acquisition will make CIMB the largest
investment broker in Malaysia, No. 2 in Singapore and seventh in
Jakarta," said Nazir.
He said CIMB would be able to expand its business in Indonesia
under the name CIMB-GK following the acquisition.
"GK Goh has been well-known internationally. We hope we can
bring more foreign investment to Indonesia," he said.
With market capitalization of $1.3 billion as of December
2004, CIMB, which is listed in the Malaysian capital market, is
the largest investment bank in Southeast Asia.
CIMB Group's profit at this year's first quarter reached 127.2
million ringgit ($33.5 million) after it earned more from
managing bond and share sales, as reported by Bloomberg last
week. (001)