Guotai Junan and Haitong Securities merger update: supplementary legal opinion filed

Guotai Junan Securities has filed a supplementary legal opinion regarding its proposed merger with Haitong Securities. The filing addresses regulatory inquiries about the merger's purpose, integration plan, and investor protections. Post-merger, the combined entity will boast a net asset value of ¥326.676 billion and net capital of ¥177.406 billion, leading the industry. The combined three-year average revenue and net profit are estimated at ¥688 billion and ¥188 billion respectively. Retail clients would total 36 million, and the firm would operate over 700 branches in China. The filing confirms funding for cash election options, with International Group covering up to ¥3 billion for Guotai Junan dissenting shareholders and Taiping Life Insurance, China Galaxy Securities, and BOC International (Asia) covering up to ¥1.89 billion for Haitong Securities dissenting shareholders. While the merger offers synergistic benefits, the filing acknowledges potential short-term earnings dilution.