GF Securities equity war heats up, CITIC
in picture
BEIJING - There has
been progress in the equity war related to GF
Securities, a main securities dealer in China.
Shanghai-listed Liaoning Chengda and
Shenzhen-listed Jilin Aodong, two main shareholders of
the GF Securities, announced on September 28 that they
had respectively acquired an additional 1.72% stake from
Shenzhen-listed Meida at a price of 1.20 yuan per share
and an additional 10% stake from Guangdong Pearl River
Investment Co Ltd, also at a price of 1.20 yuan per
share.
After the acquisition, Liaoning Chengda
now has a 27.31% stake in GF Securities, remaining the
largest shareholder.
Earlier on September 17,
Shanghai-listed CITIC Securities Co Ltd, under the flag
of CITIC Group, announced that it had made an offer for
acquiring shares of the GF Securities Co Ltd, from all
shareholders of GF Securities.
CITIC Securities
offered a premium acquisition price of 10-14% based on
the initially evaluated net asset value of GF Securities
of 1.25 yuan per share.
A spokesman of the
listed securities dealer said all deals will be
completed in market-oriented forms. CITIC
Securities' acquisition offer is hailed by the market as
a major move of mergers and acquisitions on China's
securities industry to expand capacity and meet the
challenges of international competition.
CITIC
Securities now has gross assets of 13.746 billion yuan
and net assets of 5.265 billion yuan. Its registered
capital stands at 2.4815 billion yuan. It has 41
business outlets with a total staff of 1,071.
GF
Securities has gross assets of 12 billion yuan and net
assets of 2.337 billion yuan. Its registered capital is
2 billion yuan. Of its total share capital before the
latest acquisitions is 20% held by Liaoning Chengda
(600739), 17.14% by Jilin Aoding Medicine Industry Group
Co, Ltd, 15% by Zhongshan Public Utilities Group, 12.23%
by Jifu Co and 10% by Guangdong Pearl River Investment
Co Ltd. It has 78 business outlets with a staff of
1,690.
In 2003, GF Securities ranked fourth
among all securities dealers in China in terms of
underwriting stock issues and sixth in terms of share
and fund trading value.
Just before CITIC
Securities' official acquisition offer, Shenzhen-listed
Jilin Aodong Medicine Industry Group Co Ltd announced on
September 16 that it had acquired an additional stake of
3.39% in GF Securities from the Guangdong Fenghua
Hi-tech Group Co Ltd and the Yanji Co of its parent
company Jilin Aodong Medicine Industry Group. The
acquisitions included 2.16%, or 43,118,250 shares, from
Fenghua at a price of no less than 1.168 yuan per share,
the net asset value of GF on December 31, 2003, and
1.23%, or 24,622.164 shares, from Yanji at the same
price. Jilin Aodong now has a 54.4% stake in Yanji.
After the acquisitions, Jilin Aodong owned 17.14% of GF
Securities, replacing Zhongshan Public Utilities to
become the second largest shareholder of GF Securities.
Just before Aodong's acquisitions, Shenzhen Jifu
Venture Capital Co Ltd acquired an 8.4% stake in GF
Securities from the Shanghai-listed Guangdong Meiyan
Enterprise (Group) Co Ltd at a price of 1.20 yuan per
share, and another 3.83% stake in GF Securities from
UNIDA, another Shanghai-listed company, at a price of
1.16 yuan per share. After the two acquisitions, the
company has a total of 12.23% interest in GF Securities,
becoming the fourth largest shareholder.
Shenzhen Jifu was just established in Shenzhen
on September 7, with a registered capital of 248 million
yuan. It will have to spend 290 million yuan for the two
acquisitions.
(Asia Pulse/XIC)
Sep 30, 2004
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