Haitong International Securities buys pan-Asian broker in overseas push

Haitong International Securities Group, the overseas unit of the mainland's second-largest brokerage, plans to buy London-based brokerage Japaninvest Group for US$20 million.

The move follows last week's HK$764 million issue of convertible bonds as part of a spate of fundraising deals in the past year.

The brokerage, which is pursuing rapid expansion abroad, said it would pay 18,000 yen (HK$1,290) per share for Japanese-traded Japaninvest, a 77 per cent premium to its close of 10,150 yen on Wednesday.

The deal will be settled in cash.

Haitong International's takeover of the pan-Asian brokerage comes as the mainland's securities firm step up its overseas push. Larger rival Citic Securities bought CLSA from Credit Agricole for US$1.2 billion last year.

In 2009, Haitong International's state-owned parent Haitong Securities bought Taifook Securities Group for HK$1.8 billion. The purchase from New World Development marked the first takeover by a mainland brokerage in Hong Kong.

A Haitong International spokeswoman said the Japaninvest deal would help the brokerage quickly expand its research and client coverage, paving the way for it to become a full-scale investment bank with global ambitions.