Guotai Junan International to Go Private at HK$3 per Share, 44.2% Premium, Max HK$12.615 Billion
Guotai Junan International shares surged as much as 37.3% to HK$2.855 on August 10 after resuming trading, following a privatization announcement. Offeror Guotai Haitong Financial Holdings will acquire all other ordinary shares at HK$3 each via a scheme of arrangement, a 44.2% premium over the pre-suspension close of HK$2.08, with maximum consideration of HK$12.615 billion. The offeror said it will not raise the price. The plan involves 34.47% of total shares, while the offeror and concert parties hold 66.25%.
On August 10, Guotai Junan International saw its share price rise sharply after resumption of trading, with an intraday gain of as much as 37.3% to HK$2.855. As of 10:20 a. m. , the stock was trading at HK$2.81, up 35.1%, with turnover exceeding HK$740 million and a total market capitalization of about HK$26.8 billion. The share price movement followed the company's earlier privatization announcement.
On August 7, Guotai Junan International announced on the Hong Kong Stock Exchange that Guotai Haitong Financial Holdings would acquire all other ordinary shares, excluding those held by Guotai Haitong Financial Holdings itself, at a price of HK$3 per share by way of a scheme of arrangement, to privatize and delist the company. The price represents a premium of approximately 44.2% over the closing price of HK$2.08 before the suspension of trading. The maximum total consideration involved in the transaction is HK$12.615 billion. The offeror stated explicitly that this is the final offer and will not be increased further. Upon completion of the transaction, Guotai Junan International will withdraw its listing status on the Hong Kong Stock Exchange.
Guotai Haitong and its concert parties currently hold an aggregate 66.25% equity interest in Guotai Junan International, representing approximately 6.313 billion shares. The privatization plan involves approximately 3.285 billion shares, accounting for 34.47% of the company's total share capital, of which independent shareholders hold approximately 3.216 billion shares, or 33.75%. During the same period, Guotai Haitong announced on the Shanghai Stock Exchange that its board of directors had approved this capital operation plan.