M and A
Haitong Securities Takes Over Hong Kong Securities Firm
Haitong Securities, the Shanghai-based securities firm, has
taken over
Taifook Securities for HK$1.82 billion ($235 million).
The purchase was coursed through Hong Kong infrastructure firm
NWS Holdings, which sold its 52.86 per cent stake in Taifook
for HK$4.88 per share. NWS still owns 9 per cent of the
company.
The deal presents a good opportunity for Haitong to expand its
distribution network in Hong Kong. Taifook currently services
around 120,000 clients from its 12 offices in Hong Kong and
Macau, two in Shanghai and Beijing, and several others in
Guangzhou, Huangzhou, Shenzhen and Xiamen.
In a related report on The Wall Street Journal, Monday's
takeover announcement has spurred a general share offer to
Taifook shareholders, considering that the firm has 24 million
options outstanding. Should all options be exercised, Haitong
stands to spend an extra HK$1.8 billion to close the transaction,
the news service said.
HSBC has been appointed lead manager for Haitong, while
Clifford Chance and Bank of China's
BOCI are working with NWS.
The deal has yet to receive regulatory approval.
