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Guotai Haitong Proposes Privatisation of Guotai Junan International to Accelerate Overseas Strategic Integration

News Provided by ACN Newswire2026-08-07

HONG KONG, August 7, 2026 - (ACN Newswire) - Guotai Junan International (1788.HK), a subsidiary of Guotai Haitong (601211.SH, 2611.HK), announced after the market close today that Guotai Haitong proposes to privatize and delist Guotai Junan International. The transaction will be executed by way of a scheme of arrangement to acquire all remaining outstanding common shares, excluding those already held by Guotai Haitong, at a price of HK$3.00 per share.

Market analysts point out that the privatisation offer is highly attractive. The HK$3.00 offer price represents a premium of approximately 44.2% over the closing price on the last trading day before the trading halt, and premiums of 46.5% and 37.7% over the average closing price of 30 trading days and 60 trading days up to and including the last trading day, respectively. Based on the 2025 audited consolidated net asset value of Guotai Junan International, the HK$3.00 offer price corresponds to a price-to-book ratio of approximately 1.8x. The offeror believes that, under the current market environment, the privatisation offers shareholders an attractive opportunity to realise and enhance their return on investment at a premium to the prevailing market price of Guotai Junan International.

This proposed privatisation will grant Guotai Haitong's international business greater operational flexibility. Pursuant to the Guotai Haitong’s established strategy of international business, the privatisation is intended to strengthen synergies among its subsidiaries, to facilitate the deployment of financial and client resources across domestic and overseas markets, and to accelerate the Guotai Haitong Group’s transformation into an investment bank with international competitiveness and market influence. Concurrently, by privatising Guotai Junan International, Guotai Haitong can simplify the structure of its Hong Kong operations, further align the economic incentives among its various offshore entities and simplify decision making processes. It will also enable Guotai Haitong to take a more comprehensive approach in overall risk management and capital efficiency and deployment. Operating as a private enterprise, Guotai Junan International can enjoy more flexibility to conduct long-term investment to strengthen its Hong Kong business and expand its global presence, free from the pressures of rapidly changing market conditions and short-term capital market fluctuations.