Olympia jumps af­ter con­firm­ing plan to sell Jupiter stake

New Straits Times - - Business -

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.

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