Guotai Junan to merge with Haitong Securities in major deal

Guotai Junan Securities Co., Ltd. plans to acquire Haitong Securities Co., Ltd. through a share swap and raise supporting funds. The merger will create a leading investment bank with enhanced capital, customer base, and service capabilities. The transaction will involve Guotai Junan issuing A-shares to Haitong's A-share holders and H-shares to H-share holders at a ratio of 1:0.62. Concurrently, Guotai Junan will raise up to RMB 10 billion through an A-share issuance to Shanghai State-owned Assets Operation Co., Ltd. The post-merger entity will have a combined total assets of approximately RMB 16.22 trillion and total equity of approximately RMB 3.41 trillion, based on figures as of September 30, 2024. The deal is subject to regulatory approvals. Dissenters' rights are offered, allowing qualifying shareholders to request Guotai Junan to repurchase their shares or, for Haitong shareholders, to receive a cash payment.