Stock Track | GUOTAI JUNAN I Soars 37% as Parent Company Proposes Privatization at 44% Premium

Stock Track09:30

Shares of GUOTAI JUNAN I (01788) surged 37.02% in early trading on Monday, as the stock resumed trading following a suspension. The sharp rally came after Guotai Haitong Financial Holdings, the parent company, proposed to take the brokerage private through a scheme of arrangement.

The offer price of HK$3.00 per share represents a premium of approximately 44.2% over the last traded price before the suspension on July 23. The offeror and its concert parties currently hold around 66.25% of the company's issued shares, and the board has already approved the capital restructuring plan on August 6. If the scheme is implemented, GUOTAI JUNAN I's listing status on the Hong Kong Stock Exchange will be cancelled.

The privatization move is part of a broader consolidation of the group's offshore operations, following the earlier privatization of Haitong International. It also aligns with an industry trend of mainland Chinese brokerages strengthening their Hong Kong subsidiaries to enhance management efficiency and accelerate international strategies.

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