KUALA LUMPUR (March 20): Olympia Industries Bhd confirmed today that it is planning to dispose of its stake in its stockbroking unit Jupiter Securities Sdn Bhd.

"The board of directors of Olympia wishes to state that the company has plans to dispose [of] its equity interest in Jupiter Securities Sdn Bhd and has been in discussions with interested parties," the company said in a filing to Bursa Malaysia today.

The announcement follows a media report last Friday which stated that CIMB Group Holdings Bhd is looking to acquire Jupiter Securities for RM50 million in relation to CIMB's 50:50 joint venture with China Galaxy Securities Co Ltd.

According to the report, CIMB plans to acquire loss-making Jupiter Securities for its stock broking licence, which is required by CIMB-China Galaxy JV in order to commence operation in Malaysia.

CIMB may want to place all its stock broking business in the joint venture company. The bank already has a stock broking licence, but it is solely for its current investment banking arm.

In a separate statement today, CIMB said it is "engaging in exploratory discussions with its stakeholders and various parties" to smoothen its partnership with China Galaxy, as the proposed partnership "is envisaged to involve multiple countries".

At 3.49pm, Olympia rose 37% or 5 sen to 18.5 sen, while CIMB was 0.35% or 2 sen higher at RM5.67.