Guotai Junan International (HKG:1788) said Guotai Haitong Financial, a wholly owned subsidiary of parent Guotai Haitong Securities (SHA:601211, HKG:2611), has proposed to privatize the company through a scheme of arrangement.
The offeror will pay HK$3 in cash per scheme share, according to an Aug. 7 filing with the Hong Kong bourse.
The cancellation price represents a 44.2% premium to the stock's HK$2.08 closing price before the announcement and a 46.5% premium to its 30-day average price.
About 3.29 billion shares, representing nearly 34.47% of the company's issued share capital, will be subject to the scheme.
The offeror expects to require about HK$9.86 billion in cash, rising to HK$12.6 billion if all outstanding share options and exchangeable bonds are exercised.
The offer will be fully funded through external financing, with Somerley Capital confirming sufficient financial resources are available.
The privatization is subject to regulatory and shareholder approvals, as well as sanction by the High Court of Hong Kong.
Guotai Haitong said the proposal would simplify its Hong Kong operations, strengthen coordination across subsidiaries and provide greater flexibility for international expansion.