JAKARTA, 4 January 2021 - PT MNC Kapital Indonesia Tbk (“BCAP”) announced today that it has reached an agreement to acquire a majority stake of Auerbach Grayson & Company LLC (“AGCO”), a New York-based brokerage firm specializing in global trade execution and exclusive in-depth research for U.S. institutional investors. Previously, AGCO was owned by Beltone Financial Holding (BTFH.CA), a leading Egypt-based investment bank. The acquisition will be in partnership with David Grayson, AGCO’s Co-Founder.
The deal has been finalized after receiving approval from the United States Financial Industry Regulatory Authority (FINRA). BCAP, through its wholly owned subsidiary, Winfly Ltd, became the controlling shareholder of AGCO, while AGCO’s CoFounder David Grayson repurchased the remaining of the shares.
The acquisition aims to complement MNC Sekuritas’ distribution network for its services in the equity capital market (placement and stockbroking), debt capital market, investment banking, research and online trading, not only in Indonesia, but farreaching global investment communities, particularly in the USA, UK and Europe regions as well as expanding MNC Sekuritas’ research distribution network among international fund managers.
MNC Sekuritas has also cover all AGCO’s transactions in Indonesia. “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,” said Hary Tanoesoedibjo, Executive Chairman of MNC Group of Indonesia. “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.”
"A strong distribution network is one of the keys to successin 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,” added Hary.
Auerbach Grayson built its global network by establishing partnerships with local and regional brokers and banks in emerging, frontier and developed markets worldwide. Through its network in over 125 countries, it serves as the largest global broker in terms of companies covered and number of analysts around the world and provides U.S. institutional investors with trade execution and in-depth local equity research to almost every market globally.
The firm uniquely offers local insight, corporate access, capital raising and cross border merger and acquisition. “Hary has been a long-standing client, and a good friend of the firm,” said David Grayson. “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.”