Guotai Junan to merge with Haitong Securities in mega-deal

Guotai Junan Securities Co., Ltd. will absorb Haitong Securities Co., Ltd. via a share swap, creating a mega-merger in the Chinese securities market. The deal, structured as a stock-for-stock exchange, will see Haitong shareholders receive 0.62 Guotai Junan shares for each Haitong share they own. The exchange ratio applies to both A-shares listed on the Shanghai Stock Exchange and H-shares listed on the Hong Kong Stock Exchange. Concurrently, Guotai Junan will raise up to RMB 10 billion through a private placement of A-shares to Shanghai International Group. Post-merger, Haitong Securities will be delisted and its legal entity dissolved. The combined entity will retain the Guotai Junan name and operate under a new corporate structure. This transaction constitutes a significant asset restructuring for both companies and requires approvals from various regulatory bodies.