LH Financial Group, the holding company of Land and Houses Bank (LHBANK), has entered into the stock brokerage business by acquiring a 99.79% stake in CIMB Securities International (Thailand).
The company has signed an agreement to purchase 635.9 million shares in CIMB Securities International (Thailand) from CIMB Securities International and other shareholders, according to a filing to the Stock Exchange of Thailand (SET) yesterday.
However, the company did not elaborate on the deal value.
"We bought the broker because we want to expand our financial services by offering securities trading and financial advisory services," the statement said.
The transaction, subject to approvals from the Securities and Exchange Commission (SEC) and the Bank of Thailand, is expected to be completed by early 2014, the statement said.
The company is set to provide brokerage service in the second quarter of next year.
Mergers and acquisitions have become the trend in the brokerage industry in line with rising stock trading volume.
A group of investors led by Prasit Srisuwan, a former chief executive of Country Group Securities, acquired ACL Securities' trading licence from Finansia Syrus Securities in the middle of this year.
Also this year, another group led by Pranee Phaoenchoke of Thai Rung Union Car Group also bought CIMB-GK Securities (Thailand) and renamed it Asia Wealth Management.
Shares of LHBANK closed unchanged yesterday on the SET at 1.29 baht in trade worth 9.86 million baht.