Guotai Junan to merge with Haitong Securities

Guotai Junan Securities Co., Ltd. (SSE: 601211) will absorb and merge with Haitong Securities Co., Ltd. (SSE: 600837) in a share swap. The merger will involve Guotai Junan issuing A-shares and H-shares to Haitong Securities' shareholders at a ratio of 1:0.62. Concurrently, Guotai Junan plans to raise up to RMB 100 billion in supporting funds from Shanghai State-owned Assets Operation Co., Ltd. by issuing A-shares. The A-share exchange price for Guotai Junan is set at RMB 13.83 per share, and for Haitong Securities at RMB 8.57 per share. H-share exchange prices are HKD 7.73 and HKD 4.79, respectively. Post-merger, Guotai Junan's total share capital will increase to 17,003,534,620 shares, with the potential to reach 17,629,708,696 shares if the supporting funds are fully raised. The merger aims to create a leading investment bank with enhanced capabilities and international competitiveness.