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RETAIL BANKING | Staff Reporter, Thailand

CIMB Group acquires 70% of SICCO Securities Public Company in Thailand

The total cash consideration was THB767,907,519.20 or approximately RM78,426,395.

In a release, CIMB Group Holdings announced that it has entered into a conditional Share Sale and Purchase Agreement ("SSPA") with the Siam Industrial Credit Public Company Limited (SICCO) for the proposed acquisition of SICCO Securities Public Company Limited (SSEC). SSEC is a publicly listed stockbroking company with 13 branches in Thailand and employs 269 staff.

The proposed acquisition of approximately 70% per cent of SSEC's total issued share capital is for a total cash consideration of THB767,907,519.20 (equivalent to approximately RM78,426,395) and is undertaken via CIMB Group’s wholly-owned indirect subsidiary, CIMB Securities International Pte Ltd (CSI). This equates to THB1.72 per share or a price to book ratio of 1.17x.

Under Thai laws, upon completion of the proposed acquisition, CSI will be required to conduct a mandatory tender offer to acquire all the remaining shares in SSEC that it does not already own.

“This acquisition strengthens our broking platform on the SET, one of the most attractive markets in ASEAN. We are consistently among the top 3 brokers in Malaysia, Singapore and Indonesia, and aim to be in a leading position in Thailand in the next few years,” said Dato’ Charon Wardini Mokhzani, Chief Executive Officer Designate, CIMB Investment Bank.

“This acquisition is expected to at least double our market share and take us further towards our target of being among the top 5 players in the Thai securities market. We will also look for opportunities for synergies between this new platform and CIMB Thai Bank Plc,” he added.

The proposed acquisition will not have any material effect on CIMBGH's consolidated net assets and earnings and will not have any effect on CIMBGH's share capital and substantial shareholders’ shareholdings.

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