PT MNC Kapital Indonesia (BCAP) has agreed to acquire a majority stake in Auerbach Grayson & Co. (AGCO), a New York-based brokerage firm.
AGCO was previously owned by Egypt-based investment bank Beltone Financial (BTFH), and is focused on executing global trade and offering advanced research for US institutional investors.
BCAP’s stake purchase will be completed in partnership with AGCO co-founder David Grayson.
Through its subsidiary Winfly, BCAP is expected to become the controlling shareholder of AGCO, while David Grayson would repurchase the remaining shares.
David Grayson said: “Hary has been a long-standing client, and a good friend of the firm. He started his career in the stock brokerage business in Indonesia, so he fully understands the opportunities that exist in today’s challenging market.
“Together, we share a vision to further develop Auerbach Grayson’s unique approach to global capital markets and expand AGCO during this difficult time by providing our institutional clients with research and access to over 125 markets around the world. We look forward to this next endeavour.”
AGCO built its network through partnership with local and regional brokers and banks
Auerbach Grayson is engaged in providing local insight, corporate access, capital raising and cross border merger and acquisition.
The firm has created a global network through partnerships with local and regional brokers and banks in emerging, frontier and developed markets across the world.
Through its network in more than 125 countries, the company serves as a large-scale broker based on number of companies covered and analysts.
The acquisition is said to complement the distribution network of MNC Sekuritas for its services in equity capital market, debt capital market, investment banking, research and online trading services, not only in Indonesia but also in the US, UK and Europe.
In addition, it is also expected to help in expanding MNC Sekuritas’ research distribution network among international fund managers.
MNC Group of Indonesia executive chairman Hary Tanoesoedibjo said: “By acquiring a stake of AGCO, BCAP will benefit from the strong international network of AGCO and access to its 126 local partners around the world.
“There is no doubt about AGCO’s footprint in Indonesia, this investment will allow MNC Sekuritas, a subsidiary of BCAP specializing in the capital market services to expand its international reach and have a positive impact on our performance going forward.”
Hary added: “A strong distribution network is one of the keys to success in the capital market. AGCO is expected to be a distribution network of MNC Group for placement and fundraising in the United States as well as Europe. In addition, AGCO will play a vital role in expanding BCAP’s asset management.”
