Malaysia's CIMB Group Holdings Bhd. is negotiating the sale of a stake in its brokerage business to China Galaxy Securities Co. Ltd. for about US$200 million, Bloomberg News reported Jan. 24, citing "people with knowledge of the matter."

CIMB Group is in talks to offload a minority stake in its Malaysian securities unit and up to 50% of its overseas brokerage business to China Galaxy Securities, the sources said. The Malaysian financial group aims to reach a deal by the end of March, they added.

The sources noted that no final agreements have been made and details are subject to change.

The planned stake sale is part of the group's efforts to cut costs and exit businesses that garner low returns, while expanding in selected areas to bolster profitability.

In October 2016, the two companies said they would explore a potential stockbroking joint venture and other areas of cooperation. A spokeswoman at CIMB Group declined to comment on the matter, while a representative at China Galaxy Securities could not be reached for comment, the news outlet reported.