Olympia shares boosted by disposal talks

Moody's outlook on the Korean banking system has been negative since May 2016.

KUALA LUMPUR: Shares of Olympia Industries Bhd surged 41% to 19 sen at the close of trading, its highest in at least two years, after confirming its intention to dispose Jupiter Securities Sdn Bhd.

The counter is the second most heavily traded with 233.95 million shares traded on Bursa Malaysia.

Olympia announced that it was currently in talks with interested parties to dispose its equity interest in Jupiter Securities.

“The board of directors of Olympia wishes to state that the company has plans to dispose its equity interest in Jupiter Securities and has been in discussions with interested parties,” Olympia said in a filing with Bursa Malaysia Monday.

“Olympia will make the necessary announcement upon finalisation of the terms of the proposed disposal,” it added,

Last week, StarBiz reported that CIMB Group was looking at acquiring Jupiter Securities from Olympia Industries Bhd for more than RM50mil as part of a larger corporate exercise to facilitate its joint venture (JV) with China Galaxy.

Sources said that CIMB was looking at acquiring Jupiter Securities mainly to get an additional licence for its stockbroking business that would eventually merge with China Galaxy Securities as part of a wider exercise to expand its reach and reduce cost.