SHANGHAI/HONG KONG (Reuters) – Shares in Hong Kong-listed Haitong International Securities Group nearly doubled on Monday on a proposal by its majority owner Shanghai-based Haitong Securities to privatise the unit.
Haitong Securities is offering up to HK$3.5 billion ($443 million) for the 26.6% of Haitong International Securities it does not currently own.
Haitong international Securities shares surged 97% to HK$1.4 in Monday afternoon trade, their biggest one day gain since their market debut in August 1996 and Monday’s biggest gainer in percentage terms on the Hang Seng Composite Index of financial stocks.
Shares of Shanghai-listed Haitong Securities slipped 1%.
Broker Haitong Securities will offer HK$1.52 per share for 2.28 billion outstanding shares, a 114% premium over investment banking arm Haitong International Securities’ most recent closing price of HK$0.71, the unit said late on Friday.
Trading in Haitong International Securities’ stocks and bonds was suspended on Sept.
27 pending an announcement under the takeover code.
Haitong International Securities said the privatisation proposal was due to an uncertain business outlook.
The unit suffered a net loss of HK$6.5 billion in 2022 and a net loss of HK$780.9 million for the first half of this year.
The deal will be conducted via wholly owned unit Haitong International Holdings.
(Reporting by Shanghai Newsroom and Kane Wu in Hong Kong; Editing by Kim Coghill, Kirsten Donovan)
