-- DFZQ (HKG:3958, SHA:600958) agreed to acquire a Chinese brokerage in exchange for shares of the company, the group said in a Hong Kong bourse filing Wednesday.
The securities company's Hong Kong shares fell nearly 4% in morning trade Thursday.
The framework agreement involves the purchase of Shanghai Securities from five vendors.
Of the five sellers, four will receive A shares in the company, while the fifth will receive A shares plus cash, DFZQ said.
The A shares will be issued on the basis of 10.49 yuan each, which will be further adjusted to 10.29 yuan per A share after the firm pays a planned cash dividend of 2 yuan per 10 shares.