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上海发布!同意国泰君安与海通证券合并重组

Shanghai releases! Agree to the merger and reorganization of gtja and haitong sec.

China brokerage ·  Nov 5 21:08

The Shanghai Municipal People's Government today announced its approval $GTJA (02611.HK)$ and $HAITONG SEC (06837.HK)$ for merger and reorganization.

The Shanghai municipal government requires the Shanghai State-owned Assets Supervision and Administration Commission to strengthen organizational leadership in accordance with relevant regulations, clarify responsibilities, implement them, and organize the merger and reorganization work carefully and orderly. It guides enterprises to lawfully and compliantly carry out equity transactions, name change registrations, management structure adjustments, business integration optimizations, etc., to ensure the smooth and orderly completion of the merger and reorganization work.

According to the previous announcements, the A-share exchange prices for GTJA and Haitong Securities are RMB 13.83 per share and RMB 8.57 per share, respectively. Both companies will determine the A-share exchange prices based on the average A-share stock trading price of the last 60 trading days prior to the announcement of the board of directors' resolutions, and this will establish the A-share to H-share exchange ratio at 1:0.62, meaning every 1 share of Haitong Securities stock can be exchanged for 0.62 shares of GTJA stock of the same class.

At the same time, this stock-for-stock absorption merger will provide dissenting shareholders of GTJA with the right to request acquisition and dissenting shareholders of Haitong Securities with the right to choose cash, with prices based on the highest trading price of A-shares and H-shares during the 60 trading days prior to the announcement of the board of directors' resolutions.

In addition, gtja announced that after the delivery date, gtja will handle the industrial and commercial changes such as company name and registered capital, while haitong sec will cancel its legal person qualification. The merged company will adopt a new company name.

As of the close of trading on November 5, Guotai Junan's total market cap is 164.617 billion yuan, while Haitong Securities' total market cap is 139.185 billion yuan. This means that this unprecedented deal in the securities industry involves a market cap exceeding 300 billion yuan.MergerAnd with the recent surge in the A-share market, the weight of this merger is still increasing.

In contrast, more than a year ago, swiss UBS Group, Switzerland's largest bank, paid 3 billion swiss francs to acquire Swiss Credit Suisse, equivalent to approximately 25.2 billion yuan, which is almost only a quarter of gtja's acquisition of haitong sec. This large-scale acquisition ranks high in the global securities industry.

As the largest international investment banking M&A project since 2008, this acquisition involves two listed locations and 7 domestic and foreign listed entities, making it one of the most complex M&A cases in the international capital markets. It is expected to create the largest brokerage firm domestically, and also has the potential to carry the flag of financial globalization, sailing from Shanghai to the other side of the ocean, competing on the same stage with other international investment banks.

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