Guotai Haitong (02611.HK): Signs Formal Agreement with Orient Securities to Sell 24.99% Stake in Shanghai Securities for RMB 25.12 Billion
NewTimeSpace News: Guotai Haitong Securities Co., Ltd. (stock code: 02611) announced that on 27 July 2026, the company, Bailian Group, Shanghai International Group Investment, Shanghai International Group, and Shanghai Chengtou Group (each as a seller) entered into a formal agreement with buyer Orient Securities Co., Ltd. to sell their respective equity interests in Shanghai Securities (representing 100% of Shanghai Securities' equity in aggregate).
According to the announcement, the appraised value of the target assets as at the valuation benchmark date (31 March 2026) was RMB 25,119,840,000. Following fair negotiation based on the asset appraisal report, the total consideration was determined at RMB 25,120,000,000, of which RMB 23,550,000,000 will be settled by the buyer issuing an aggregate of 2,288,629,735 consideration A-shares to the sellers (based on an adjusted issue price of RMB 10.29 per share), and RMB 1,570,000,000 will be paid in cash to the company.
Specifically, the company's 24.99% equity interest in Shanghai Securities corresponds to a consideration of approximately RMB 6.28 billion, comprising a cash portion of RMB 1.57 billion and a share portion of RMB 4.71 billion, and it will be allotted 457,481,668 consideration A-shares. Upon completion of the proposed disposal, the company will no longer directly hold any equity interest in Shanghai Securities.
The announcement disclosed that, assuming the proposed disposal was completed on 30 June 2026, the group would recognize a gain of approximately RMB 29.7 million. The net proceeds from the proposed disposal are expected to be used as general working capital for the group.
Upon completion, the company's aggregate equity interest in the buyer (including its subsidiaries) will increase to approximately 4.96% of the buyer's enlarged issued share capital. As Shanghai International Group holds approximately 20.40% equity interest in the company, the transaction constitutes a connected transaction subject to reporting, announcement, and annual review requirements under Chapter 14A of the Hong Kong Listing Rules, but is exempt from independent shareholders' approval.
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