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Haitong International announces independent brokerage firm acquisition

( Updated: 2014-11-28 10:07

The Haitong International Securities Group has reached an acquisition agreement with the board of directors of Japaninvest as well as its institutional shareholder, Société Générale, which holds 49.99 percent of the issued ordinary share capital of Japaninvest.

The agreement, reached on Nov 26, has Haitong International paying 18,000 yen($152.3) per share to acquire all issued and yet-to-be issued ordinary shares of Japaninvest, for approximately 2.878 billion yen approximately (189 million HK dollars).

Japaninvest, was incorporated in London, UK in 2002 and is a leading independent brokerage firm that specializes in Asian equity research and provides pan-Asia equity research and sales services for global clients. Its shares have been listed on the Tokyo Stock Exchange since 2006 and it holds finance licenses in London, New York, San Francisco, Tokyo and Hong Kong.

Lin Yong, the deputy chairman and CEO of Haitong International, explains further, "This acquisition of Japaninvest is a key step in Haitong International’s move into the global financial market and expanding its businesses overseas. When it is completed, Haitong International’s licenses will cover the United States, the United Kingdom and Japan, as well as Hong Kong and Singapore, which means that Haitong International can conduct corporate finance, securities brokering, and assets management in the world's major financial centers, which will pick up the pace of its internationalization. As China’s capital market gradually opens up of and the renminbi becomes internationalized, especially after the opening of the Shanghai-Hong Kong Stock Connect, overseas investors will get wider access to China for investment and there is already stronger demand from investors around the world to tap into the China market.In looking forward, Haitong International will set up a pan-Asia research site covering mainly Chinese companies and make optimal use of its research products and expand its institutional client base to reinforce its cross-border business and provide a broader spectrum of financial products and services to investors from both the Chinese mainland and overseas. This, in turn, will increase the significance and awareness of Haitong International's brand globally.”

The acquisition agreement is subject to approval from the shareholders of Japaninvest, as well as the countries’ regulators and the management of Haitong International and Japaninvest have said they will do their best to complete the transaction as early as possible

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