Guotai Junan revises merger proposal for Haitong Securities

Guotai Junan Securities (SSE: 601211) has submitted a revised draft of its proposal to acquire Haitong Securities through a share swap and raise additional capital. The revised draft, filed on December 30, 2024, addresses inquiries from the Shanghai Stock Exchange regarding the merger, specifically around debt handling, earnings dilution risks, and financial asset impairment. Key updates include details on the transfer of Haitong Securities' debt, further analysis of potential earnings dilution, and added disclosure on financial asset impairment risks. The original proposal, submitted on December 24, 2024, outlined a plan for Guotai Junan to issue both A and H shares to Haitong Securities shareholders in exchange for their existing shares. The revised filing clarifies various aspects of the deal but doesn't alter the fundamental structure of the proposed transaction.