Citic Securities sets high goals after CLSA deal

PUBLISHED : Thursday, 01 August, 2013, 12:00am
UPDATED : Thursday, 01 August, 2013, 5:07am

Citic Securities, a state-owned securities firm, completed its acquisition of 80.1 per cent of CLSA for US$841.68 million from Credit Agricole Corporate and Investment Bank (CIB) yesterday.

Following Citic Securities' purchase of 19.9 per cent of CLSA for US$310.32 million in July last year, the Shanghai- and Hong Kong-listed firm wholly owns CLSA, which describes itself as "Asia's independent voice".

"Citic Securities has opted to maintain CLSA's independent perspectives and vibrant corporate culture," Citic Securities chairman Wang Dongming said.

CLSA was co-founded in 1986 by Gary Coull, a former South China Morning Post business journalist, and Jim Walker, a former financial editor at the Post. Walker died in 2004, followed by Coull in 2006.

Based in Hong Kong, CLSA has 1,500 professionals in 15 Asia-Pacific cities, along with London, Amsterdam, New York, Boston, Chicago and San Francisco, according to its website.

"With CLSA's platform, Citic Securities is the first Chinese investment bank with connectivity across the world's most dynamic capital markets, which places us in an unparalleled position to capture business opportunities," Wang said.

Citic Securities says it has become the first Chinese brokerage and investment banking firm to provide services across global markets through the combined operation of CLSA's offices and its own network of 196 outlets on the mainland and in Hong Kong. The CLSA brand will be preserved to spearhead Citic Securities' global sell-side businesses outside China, it says.

Jonathan Slone, CLSA chairman and chief executive, has been appointed to the board of Citic Securities.

"Having worked with Citic Securities over the past four years to close this deal, the CLSA team is very excited about working together to increase our product and service offering. This deal solidifies our position in Asia and will provide further backing for our expansion globally," Slone said.

Credit Agricole CIB will retain CLSA's Taiwan business. Credit Agricole CIB is the corporate and investment banking arm of Credit Agricole Group of France.