Guotai Junan to merge with Haitong Securities

Guotai Junan Securities Co., Ltd. plans to merge with Haitong Securities Co., Ltd. via a share swap, creating a combined entity with strengthened market leadership. The merger will be achieved through Guotai Junan acquiring Haitong Securities by issuing A-shares to Haitong's A-share holders and H-shares to H-share holders, based on a share exchange ratio of 1:0.62. The A-share exchange price for Guotai Junan is set at ¥13.83 per share, and for Haitong Securities it's ¥8.57. Concurrently, Guotai Junan intends to raise up to ¥10 billion through a private placement of A-shares with Shanghai State-owned Assets Operation Co., Ltd. to fund international expansion, trading and investment activities, digital transformation, and working capital. Post-merger, the combined company's total assets will exceed ¥16 trillion, with owner's equity reaching over ¥3.4 trillion. The transaction still requires regulatory approvals.