Movement Alert|GUOTAI JUNAN I Rises 37.02% at Open, Parent Company Offers 44.2% Premium for Privatization

Market Focus08-10 09:21

On August 10, GUOTAI JUNAN I rose 37.02% at open, trading at HK$2.85 per share, with turnover of HK$60.62 million. The stock resumed trading after being suspended since July 23.

On the news front, Guotai Haitong Financial Holdings proposed to privatize GUOTAI JUNAN I through a scheme of arrangement under Section 673 of the Companies Ordinance at HK$3.00 per share, representing a premium of approximately 44.2% to the last traded price before suspension. The offeror and parties acting in concert currently hold approximately 66.25% of the company's issued shares. The board of directors approved the capital restructuring plan on August 6. If the scheme is approved and implemented, it will result in the cancellation of the company's listing status on the Hong Kong Stock Exchange. This follows the precedent set by Haitong International's earlier privatization, as the parent company consolidates its offshore operations amid a broader industry trend of mainland brokerages strengthening their Hong Kong subsidiaries.

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