Guotai Junan to merge with Haitong Securities

Guotai Junan Securities Co., Ltd. (SSE: 601211) plans to absorb merge with Haitong Securities Co., Ltd. (SSE: 600837) through a share exchange. Haitong Securities' A and H shares will be delisted from the Shanghai and Hong Kong Stock Exchanges, respectively. The merger will be implemented via a share swap, with Haitong A and H shareholders receiving 0.62 Guotai Junan A and H shares, respectively, for each Haitong share held. Concurrently, Guotai Junan will raise up to RMB 100 billion by issuing new A shares to its controlling shareholder, Shanghai International Group. Post-merger, Guotai Junan's total share capital will increase to approximately 17.63 billion shares. Shanghai International Group's stake is expected to increase to 20.40%, assuming the maximum amount of supporting funds is raised. Dissenting shareholders of both Guotai Junan and Haitong Securities will be offered respective rights to sell their shares.