Newsletter summary
League of Nations Securities (601456Crashbandicoot1androidSH) announced a major restructuring plan to purchase 100% shares of Minsheng Securities at an issue price of 11.31 yuan per share and raise no more than 2 billion yuan to assist business development. In addition, a number of listed companies, such as time Publishing, have disclosed share sales and subscribed for new shares. The purpose of this transaction is to integrate financial resources and enhance market competitiveness.
Text of news flash
[Guolian Securities announces major asset restructuring plan and resumes trading] on the evening of May 14, Guolian Securities (601456.SH) announced a major asset restructuring plan, planning to issue A shares to acquire 100% shares of Minsheng Securities (hereinafter referred to as "Minsheng Securities"), while raising no more than 2 billion yuan.Crashbandicoot1androidMatching funds. The share issue price of this restructuring is 11.31 yuan per share, and the total amount of funds raised is expected to be no more than 2 billion yuan. The move by Guolian Securities is aimed at acquiring all the shares of Minsheng Securities held by 46 subjects, including Guolian Group and Shanghai Lianquanyu Enterprise Management Co., Ltd. In addition, Guolian Securities plans to issue A-shares to no more than 35 specific investors to raise matching funds, with no more than 250 million shares. The company said that the matching funds raised by the transaction will be used to develop Minsheng securities business. The listed companies involved in this transaction include Sofia (002572) (002572.SZ), time Publishing (600551) (600551.SH), Beijing Lear (002392) (002392.SZ), Zhangjiang Hi-Tech (600895) (600895.SH), Shanghai Group (600018) (600018.SH), Mass Transit (600611) (600611.SH), Shandong Guoxin (1697.HK), Oriental Venture (600278) (600278.SH), Dianxue Fashion (603587) (603587.SH), etc. They all hold shares in Minsheng Securities. Time Publishing and Sophia have respectively signed the "Framework Agreement on issuing shares to purchase assets" with Guolian Securities, planning to sell their shares and subscribe for the newly issued A shares of Guolian Securities. The merger and acquisition is seen as part of the financial supply-side reform, which aims to optimize and integrate existing financial resources. Industry insiders predict that through policy guidance and market promotion, the integration and optimization of financial resources will become the norm. Guolian Securities stressed that this transaction will help to implement the integrated development strategy of the Yangtze River Delta and help the company achieve great-leap-forward development by integrating the resources of Wuxi and Shanghai. The company and Minsheng Securities are highly complementary in business and region, and the integration will significantly enhance the market competitiveness. The capital strength of the two securities firms is similar, but there are some limitations. This transaction will promote the optimization and integration of business channels, customer resources and products and services, and achieve capital-intensive development.