Guotai Junan to merge with Haitong Securities in stock swap

Guotai Junan Securities Co., Ltd. will absorb and merge with Haitong Securities Co., Ltd. in a stock swap. The merger will create a leading investment bank with enhanced capabilities and global reach. Guotai Junan will issue A-shares and H-shares to Haitong Securities' shareholders at a ratio of 1:0.62. The exchange ratio is based on the 60-day average trading price prior to the announcement, valuing Haitong Securities at approximately ¥976.15 billion. Concurrently, Guotai Junan will raise up to ¥100 billion in supporting funds from Shanghai State-owned Assets Operation Co., Ltd. The merger is subject to regulatory approvals and shareholder votes. Post-merger, Haitong Securities will be delisted and deregistered.