Guotai Junan Securities to merge with Haitong Securities in share swap deal (updated)

Guotai Haitong Securities Co

09/10/2024 13:59

(Adds more details)
       BEIJING, Oct 9 (Reuters) - Shanghai-based Guotai Junan
Securities  601211.SS  on Wednesday announced details of its
plan to merge with its cross-town rival Haitong Securities
 600837.SS  in a share swap deal, a filing to the Shanghai Stock
Exchange showed. 
    Under the deal each A share of Haitong Securities can be
exchanged for 0.62 A shares of Guotai Junan, and each H share of
Haitong Securities can be exchanged for 0.62 H shares of Guotai
Junan.
        Guotai Junan's A-share conversion price is 13.83
yuan/share, and Haitong Securities' A-share conversion price is
8.57 yuan/share
  
    The brokerage also aims to raise up to 10 billion yuan
($1.42 billion) through A-share issuance to its controlling
shareholder, Shanghai State-owned Assets Management Co Ltd.
    Guotai Junan first announced its intention to acquire
Haitong Securities on Sept. 6 through a share swap. 
    The merger of two state-backed brokerages in China to create
a sector leader with $230 billion in assets is part of Beijing's
drive to consolidate the $1.7-trillion industry in an
increasingly challenging market, and the move is set to gather
pace, analysts said.
    The combined entity, with 1.6 trillion yuan ($226 billion)
in total assets, will overtake Citic Securities  600030.SS  as
China's largest brokerage. 
    Haitong and Guotai Junan are both controlled by companies
running state assets for the Shanghai government.


($1 = 7.0668 Chinese yuan renminbi)

 (Reporting by Ella Cao and Sumeet Chatterjee, Editing by Louise
Heavens)
 ((Ella.Cao@thomsonreuters.com;))