Skyway becomes latest Hong Kong broker to be bought by mainland buyers
Mainland firms eager to acquire HK peers for business licences required to operate in the city, or to help them capture and expand overseas opportunities
The move marks the latest mainland acquisition of a Hong Kong broker, a trend developing to allow Chinese companies to gain business licences in the city, but also in many cases to help lead their future overseas ambitions.
China Minsheng, through its subsidiary CMBC International, and Huarong, through its arm Brilliant Decent, will jointly buy stakes from two shareholders Lam Hoi-sze and Ai Qing, at 6 HK cents per share, an 81 per cent discount to its last closing price on Thursday, according to a Skyway statement.
They will also subscribe for 26.95 billion new shares issued by Skyway at 3.2 HK cents.
The two mainland firms will then hold a controlling 66.4 per cent share in Skyway, spending a total HK$864.8 million on the two transactions.
