CREDIT AGRICOLE SA : CITICS and Crédit Agricole CIB are pleased to jointly
announce the completion of the sale and purchase of the remaining 80.1%
interest in CLSA.
Joint Press Release
CITIC Securities Company Limited ("CITICS") and Crédit Agricole Corporate and
Investment Bank ("Crédit Agricole CIB") are pleased to jointly announce the
completion of the sale and purchase of the remaining 80.1% interest in CLSA.
With the 19.9% interest acquired previously, CLSA becomes a wholly owned
subsidiary of CITICS and will spearhead its global, ex-China, sell side agency
Beijing / Hong Kong / Paris / Amsterdam - 31 July 2013: CITICS and Crédit
Agricole CIB have the pleasure to jointly announce today that all the
conditions precedent to the acquisition of the remaining 80.1% stake in CLSA
have been satisfied or waived. The acquisition was completed on 31 July 2013,
making CLSA a wholly owned subsidiary of CITICS.
CITICS becomes the first China based brokerage and investment banking firm to
provide client services with a global reach spanning across major global
markets including Australia, China, Hong Kong, India, Indonesia, Japan,
Malaysia, the Philippines, Singapore, South Korea, Thailand, the United
Kingdom and the United States through the network of offices of CLSA, in
addition to CITICS' own existing network of 196 outlets in China and Hong
Due to a change in the scope of assets and businesses in CLSA, the net
purchase consideration that Crédit Agricole CIB received on completion of this
acquisition was USD 841.68 million, subject to adjustments in accordance with
contractual terms with reference to the completion accounts of CLSA when these
become available. CLSA's current business in Taiwan, which is not material to
the overall business of CLSA as a whole, is excluded from this acquisition to
comply with local regulations.
The Taiwan business of CLSA will be retained by Crédit Agricole CIB and
continues to operate under its ownership. CITICS and Crédit Agricole CIB have
also agreed that, as and when any future changes in the relevant laws and
regulations in Taiwan permit, CLSA has the right to repurchase the CLSA Taiwan
business from Crédit Agricole CIB within a period of 2 years. It is expected
that, in the meantime, the exclusion of CLSA's Taiwan business from the
acquisition would not have any undue impact on the overall businesses and
operations of CLSA.
CITICS vows to maintain the independent perspectives of CLSA's research and
its vibrant culture through safeguarding the autonomy of CLSA's daily
operations. At the same time, CITICS is committed to further strengthening its
domestic franchise in the PRC and develop cross-border business through CITIC
Securities International Company Limited ("CSI"). Its acquisition of CLSA will
offer a highly complementary international platform to better serve clients in
China and globally.
Going forward, as a wholly owned subsidiary of CITICS, CLSA's brand name will
be preserved to spearhead CITICS' global, ex-China, sell side agency
businesses. Business will be as usual at CLSA with its existing management
team continues to manage CLSA's business and operations under the hallmark of
a management agreement.CLSA's management team is accountable to CLSA's board
of directors, comprising of, among others, WANG Dongming, Chairman of CITICS,
YIN Ke, Vice Chairman of CITICS and CEO of CSI, Jonathan Slone, Chairman and
CEO of CLSA and three independent directors. GE Xiaobo, a member of CITICS
Executive Committee, will be appointed at the next board meeting. Striving for
high standards of corporate governance, the board of CLSA will further be
joined by a fourth independent director.
As the leading investment bank in China, CITICS remains committed to its
shareholders, clients, and employees. CITICS and CLSA share a common vision to
provide clients with a globally integrated service driven by a culture of
innovation, integrity and independence. Both firms aim to offer broader
products, views, reaches and seamless services to all clients, who can expect
to benefit from the combined but differentiated strengths of CITICS and CLSA
in product offerings, service capabilities and global experience.
Collectively, CITICS and CLSA will remain committed to creating complementary
products and services in order to cater for the diverse needs of their varied
WANG Dongming, Chairman of CITICS, remarked, "We are very excited about our
business prospects. Together with CLSA's unmatched platform, CITICS is the
first Chinese investment bank with exclusive focus on and breadth of
connectivity across the world's most dynamic capital markets, which place us
in an unparalleled position in accompanying our clients to capture business
opportunities in today's fast track market."
"We believe that CITICS' full ownership in CLSA marks a significant step in
CLSA's business expansion in China, cementing CLSA's strengths in the Asia
Pacific region by contributing CITICS' access to the abundant resources in the
China market such as client coverage, government relationship, nation-wide
sales and distribution networks. At the same time, CITICS opts to maintain
CLSA's independent perspectives and vibrant corporate culture. My teams at
CITICS and colleagues at CLSA have already been working together on various
initiatives of synergistic collaboration, for which we will provide updates to
the market in due course." added Mr. WANG.
Jonathan Slone, Chairman and CEO of CLSA, commented: "Having worked with
CITICS 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
and to drive shareholder value.This deal solidifies our strong position in
Asia and will provide further backing for our expansion globally."
Jean-Yves Hocher, CEO of Crédit Agricole CIB, commented: "We are delighted
that the CLSA transaction has been successfully completed, thanks to the close
and on-going relationship we have developed with CITICS. Crédit Agricole CIB
reaffirms its support of CLSA and we look forward to continue our cooperation
with CITICS in the future. The new venture will have a global reach and will
be a driving force in the sector in Asia."
* * * *
For further information, please contact:
CITIC Securities Company Limited Crédit Agricole Corporate and
Beijing Investment Bank
MA Liwei Louise Tingström
+86 10 6083 6035 +44 (0) 7899 066 995
CITIC Securities International Company
+852 2237 9131
Notes to Editors:
ABOUT CITIC SECURITIES COMPANY LIMITED (SSE: 600030, HKSE: 6030)
CITICS is a leading full service investment bank in China, whose A and H
shares are listed on the Shanghai Stock Exchange and The Stock Exchange of
Hong Kong Limited respectively. CITICS maintains top rankings in China's
capital markets across its principal business areas of securities brokerage,
investment banking and asset management.
CITICS is one of the constituents stocks of both SSE 50 and MSCI China Index,
as well as one of the top five constituents stocks in FTSE/Xinhua A50 China
Index. It is also a constituent stock of the Hang Seng China H-Financials
Index, Hang Seng China AH Index Series, Hang Seng Global Composite Index, Hang
Seng Composite Index, Hang Seng Composite Industry Index - Finance, and the
Hang Seng Composite MidCap index.
For more information about CITICS, please visit its website at
ABOUT CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK:
Crédit Agricole CIB is the Corporate and Investment Banking arm of the Crédit
Agricole Group, the world's fifth-largest bank by total assets (The Banker,
Crédit Agricole CIB offers its clients a comprehensive range of products and
services in capital markets, investment banking, structured finance and
The Corporate and Investment Bank is structured around four major divisions:
· Client Coverage & International Network and Global Investment Banking
· Structured Finance
· Global Markets Division
· Debt Optimisation & Distribution.
The Bank provides support to clients in large international markets through
its network with a presence in major countries in Europe, America, Asia and
the Middle East.
For more information, please visit its website at www.ca-cib.com
CITICS-Crédit Agricole CIB eng
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: CREDIT AGRICOLE SA via Thomson Reuters ONE
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