(Bloomberg) -- GF Securities Co. plans to buy a 20% stake in Value Partners Group Ltd. from the asset manager’s founders, as part of a push by the mainland Chinese brokerage to expand overseas, people familiar with the deal said.
The Guangzhou-based brokerage is nearing an agreement to buy the stake from Cheah Cheng Hye and V-Nee Yeh for about HK$1.1 billion ($141 million), one of the people said, asking not to be identified. The deal is subject to board approval later this week, the person said.
Cheah and Yeh currently hold 25% and 16% of Value Partners, respectively, and would both retain a smaller share in the Hong Kong-based and listed firm. They founded the boutique fund manager in 1993 and it now has offices across China as well as in Kuala Lumpur, Singapore and London. It posted a loss of HK$544 million ($69.5 million) last year as its assets under management tumbled to $6.1 billion from $10 billion in 2021.
Value Partners confirmed in an exchange filing that talks on the stake sale are ongoing.