SGX listed New Silkroutes Group will acquire a significant stake in a New York-based broker-dealer and investment bank group.
New Silkroutes will acquire an 80 percent stake for $14.4 million as it expands its own investment business and continues to diversify its growing stable of business channels, the firm said in an announcement to the the Singapore Exchange.
The U.S. group owns CG Capital Markets (CGCM), which specialises in fixed-income market making and provides capital raising and advisory services to companies. New Silkroutes will issue new shares to fund the acquisition.
U.S. Name Change
At present New Silkroutes gets the bulk of its revenue from oil trading, and also has businesses in healthcare and technology. «The acquisition will also enable New Silkroutes Capital to operate seamlessly across different time zones in key gateway cities worldwide and help New Silkroutes Group diversify its income stream,» said Goh Jin Hian, Chief Executive Officer at New Silkroutes Group.
Following the acquisition, the US companies will operate under the brand name of New Silkroutes' wholly-owned investment arm, New Silkroutes Capital, which will be one of the first Singapore-based investment companies with operating entities registered with both the US Securities and Exchange Commission and the Financial Industry Regulatory Authority.
