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DFZQ to Buy Shanghai Securities for 25 Billion Yuan in Cash-and-Stock Deal

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Chinese broker DFZQ (SHA:603958, HKG:3958) has signed a definitive agreement to buy a 100% stake in Shanghai Securities for 25.1 billion yuan in both shares and cash.

The consideration will be settled by issuing 2.29 billion new DFZQ A-shares at 10.29 yuan each, or 23.6 billion yuan in total, to all vendors, according to a bourse filing on Monday.

Further, a cash payment of 1.57 billion yuan will be made specifically to Guotai Haitong (SHA:601211, HKG:02611), which is selling its 24.99% stake, a separate disclosure showed.

The other vendors are Bailian Group (SHA:600827), Shanghai Chengtou (SHA:600649), and two state-owned entities under Shanghai SASAC, namely SIG & SIG Investment.

The acquisition, structured as a major transaction requiring shareholder and regulatory approvals, will significantly boost DFZQ's total assets into the industry's top ten and expand its wealth management client base from 3.29 million to over 5 million accounts.

The development comes three months after DFZQ first announced plans to take full control of Shanghai Securities in April.

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