Haitong Securities to buy 52.86% stake in Taifook Securities

Nov. 23, 2009 (China Knowledge) - Haitong Securities<600837>, the second-largest securities firm in China by assets, said on Monday that its Hong Kong unit would buy a 52.6% stake in Hong Kong's largest local securities brokerage Taifook Securities Group Ltd<0665>. 

According to Haitong Securities' filing with the Shanghai Stock Exchange, Hai Tong (HK) Financial Holdings signed an agreement with NWS Holdings Ltd<0659> on Nov. 19 to buy the stake from the latter for HK$1.82 billion, or HK$4.88 per share.

Upon the completion of the deal, Hai Tong (HK) Financial will be the largest shareholder of the local brokerage, while NWS Holdings will own a 9% stake.

The acquisition is an important move of the company's strategy of becoming an international brokerage group. With Taifook's client base and brand in Hong Kong, Haitong will expand in the financial hub rapidly, said Haitong Securities.

Shares of Haitong Securities will resume trading on Nov. 25 after being suspending from trade last week.