Guotai Junan International (1788) said it has received a nearly HK$10 billion privatization proposal from its parent at over 40 percent premium.
The securities firm’s parent Guotai Haitong Group is offering HK$3 for the 34.5 percent shares it does not own, representing a 44.2 percent premium to the closing price of its last trading day last month, according to a filing on Friday.
The total consideration is around HK$9.86 billion for the 3.9 billion scheme shares.
Together with the HK$2.75 billion fund needed for acquiring the shares from the outstanding share options and exchangeable bonds, the maximum amount of cash required for the take-private proposal is approximately HK$12.6 billion, the filing said.
The company said the proposal offers shareholders an opportunity to realize their investments at an attractive price in current uncertain market conditions and is in line with Guotai Haitong’s established strategy of international business.
