Shares in Haitong International Securities double on privatisation plan (updated)

Haitong International Securities

09/10/2023 08:38

(Adds deal background)
       SHANGHAI/HONG KONG, Oct 9 (Reuters) - Shares in Hong
Kong-listed Haitong International Securities Group  0665.HK 
nearly doubled on Monday on a proposal by its majority owner
Shanghai-based Haitong Securities  600837.SS  to privatise the
unit.
    Haitong Securities is offering up to HK$3.5 billion ($443
million) for the 26.6% of Haitong International Securities it
does not currently own. 
    Haitong international Securities shares surged 97% to HK$1.4
in Monday afternoon trade, their biggest one day gain since
their market debut in August 1996 and Monday's biggest gainer in
percentage terms on the Hang Seng Composite Index of financial
stocks  .HSCIF .    
     Shares of Shanghai-listed Haitong Securities  600837.SS 
slipped 1%.
    Broker Haitong Securities will offer HK$1.52 per share for
2.28 billion outstanding shares, a 114% premium over investment
banking arm Haitong International Securities' most recent
closing price of HK$0.71, the unit said late on Friday.
    Trading in Haitong International Securities' stocks and
bonds was suspended on Sept. 27 pending an announcement under
the takeover code.
    Haitong International Securities said the privatisation
proposal was due to an uncertain business outlook.
    The unit suffered a net loss of HK$6.5 billion in 2022 and a
net loss of HK$780.9 million for the first half of this year.
    The deal will be conducted via wholly owned unit Haitong
International Holdings.
    

 (Reporting by Shanghai Newsroom and Kane Wu in Hong Kong;
Editing by Kim Coghill, Kirsten Donovan)
 ((Jason.Xue@thomsonreuters.com;))