Primus Financial Takes Controlling Interest In US Broker

Vanessa Doctor

8 April 2010

Hong Kong financial services provider Primus Financial has taken a controlling interest in US bond broker Chapdelaine & Co.

The size of the transaction was not disclosed in both companies' statement, although it is understood that the broker will carry a book value of about $100 million on closing. The purchase will be primarily funded by Primus affiliate PFH Partnership Holdings and employees of Chapdelaine will own a significant stake at the deal's completion.

"This important capital infusion will allow us to move forward with our objectives of widening our geographic footprint and adding top industry talent to enhance our client service and execution capabilities," said Geoffrey Coley, the chief executive officer of Chapdelaine.

Should the deal obtain regulatory approval, this will the second acquisition by the Hong Kong firm since it was established in April 2009. Primus, through a partnership with China Strategic Holdings Ltd, had bought American International Group's insurance arm in Taiwan for $2.15 billion in October.

Simpson Thacher & Bartlett LLP acted as legal counsel for Primus and PFH, while Sullivan & Cromwell LP represented Chapdelaine.