Guotai Junan responds to inquiry on Haitong merger

Guotai Junan Securities (SSE:601211) has responded to the Shanghai Stock Exchange's inquiry regarding its proposed merger with Haitong Securities. The merger will be a share-swap absorption, with Haitong being delisted. The exchange questioned the rationale, pricing, and integration plans. Guotai Junan defended the identical exchange ratio for A and H shares, citing fairness and precedent. They asserted the deal creates synergies, combining assets, clients, and businesses to become a leading investment bank. The combined firm's pro forma net assets will be ¥326.7 billion, with net capital of ¥177.4 billion. A配套募集资金 of up to ¥10 billion is planned for areas including international expansion and digital transformation. Concerns about post-merger earnings dilution were addressed, with plans to mitigate the impact. The filing details the required regulatory approvals, both domestic and international, still needed.