By Jiahui Huang
Shares of Haitong International Securities Group rose sharply after its parent made an offer to take the company private and buy shares it doesn’t already own in the brokerage.
The stock rose as much as 101.4% to touch 1.43 Hong Kong dollars (US$0.18) on Monday, compared with the HK$1.52 offer price under the proposed offer. Shares were last at HK$1.40.
Parent Haitong International’s offer is a 114.1% premium to the last closing price of HK$0.71 on Sept. 26, Haitong International Securities said late Friday. The company’s shares resumed trading Monday after being on a trading halt since Sept. 27.
Haitong International and its concerted parties own close to 74% of the brokerage, meaning the parent would pay around HK$3.5 billion for the remainder of the shares.
Haitong International proposes to finance the cash consideration payable under the proposal via external financing, Haitong International Securities said.
Once successful, Haitong International plans to delist Haitong International Securities from trading on the Hong Kong exchange.
Write to Jiahui Huang at [email protected]
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