Comprehensive M&A data with integrated detailed company information

CITIC corners Guangdong area with Guangzhou Securities
Posted on Thursday, 10 January 2019 09:41
One of China’s largest investment banks is snapping up Guangzhou Securities for as much as CNY 13.46 billion (USD 1.96 billion) to leapfrog development in Guangdong province, or even the whole of the southern region.

CITIC Securities is acquiring the brokerage from Yuexiu Financial Holdings and Financial Holdings in an all-scrip deal that equates to CNY 16.97 apiece and includes a pre-condition clause.

Guangzhou Securities will transfer interests of 99.0 per cent in Guangzhou Futures and 24.0 per cent in Golden Eagle Fund Management to its current existing shareholders.

The mainland incorporated financial services provider mainly conducts business domestically and activities range from margin trading and securities investment fund distribution to underwriting and sponsorship, and consultation.

As at 30th November 2018, it had total unaudited consolidated total assets and net assets of CNY 46.56 billion and CNY 11.16 billion, respectively.

Guangzhou Securities is one of the earliest established securities companies in China and has obtained certain regional brand awareness based on its long presence in the Guangdong area.

CITIC will be able to quickly establish a market in this region by leveraging on the existing outlets and customer resources of the brokerage.

On the other hand, Guangzhou Securities will have the backing to expand and increase its capacity in serving the province and surrounding areas.

Furthermore, Yuexiu and Financial Holdings will be gain a shareholder position in one of the country’s largest investment banks by their respective 32.8 per cent and 67.2 per cent stakes in the multi-billion-yuan sale.

Zephyr, the M&A database published by Bureau van Dijk, shows the deal is among the top 100 mergers and acquisitions targeting the investment banking and securities brokerage sector on record.

In addition, it will be the 19th largest-ever by value targeting a China-registered company operating in the industry.

© Zephus Ltd