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.
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 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.
The firm launched its first overseas branch when it set up in Singapore in January.
Japaninvest is expected to be delisted from the Japanese stock market after regulatory approval in the country.
Haitong International last month raised US$600 million in a five-year bond deal. That followed a HK$3 billion rights issue in April.
Last year, it raised more than HK$5 billion, including HK$1.2 billion from a rights issue in April, HK$1 billion from two convertible bond issues in July and October, and a revolving syndicated loan worth HK$3 billion.
Shares in Haitong International closed 1.12 per cent higher at HK$4.51 yesterday.
The brokerage has high hopes for businesses including margin financing, fixed income, currencies and commodities, as well as wealth management and complex structured finance.
Haitong International said it was on track to obtaining a brokerage licence in the United States and hoped to give further details later this year.
