Olympia jumps after confirming plan to sell Jupiter stake
KUALA LUMPUR: Olympia Industries Bhd confirmed yesterday it is planning to dispose of its stake in stockbroking unit Jupiter Securities Sdn Bhd to an unidentified party.
The news sent Olympia’s share price rising 40.74 per cent to settle at 19 sen. It was the second most active counter, with 233.94 million shares traded.
“The board of directors of Olympia wishes to state that the company has plans to dispose of its equity interest in Jupiter Securities and has been in discussions with interested parties,” it said in a filing to Bursa Malaysia.
CIMB Group Holdings Bhd is reportedly looking to buy Jupiter Securities for RM50 million for its stockbroking licence.
The licence is a requirement for CIMB’s 50:50 joint venture with China Galaxy Securities Co Ltd to commence operations in Malaysia.
CIMB’s tie-up with China Galaxy is also part of a wider exercise to expand its reach and reduce cost.
The potential RM50 million price will be equivalent to 7.14 times Olympia’s sales for the financial year ended December 31 2016.
CIMB said it was in discussions with various parties as its partnership with China Galaxy would involve multiple countries.