(Yicai Global) June 18 -- Lakala Payment, a Chinese third-party payment platform, will invest CNY360 million (USD52 million) to establish a securities firm with China's Legend Holdings and VMS Securities.
Lakala will hold 24 percent of the equity while Legend will pay CNY765 million to have a 51 percent stake, the Shenzhen-based fintech firm said in a statement. Hong Kong's VMS Securities will hold 25 percent of the equity. The trio will need still need a permit from the China Securities Regulatory Commission to form the firm with a registered capital of CNY1.5 billion (USD216.6 million).
Establishing the company will improve Lakala's business positioning, it said. Lakala's stock price [SHE: 300773] has rallied by the daily limit of 10 percent to CNY53.10 (USD7.70).
Founded in 2005, Lakala obtained the first license from the central bank to provide payment services for small companies and individuals. Beijing's Legend is the largest shareholder of Lakala with a 28 percent stake.
Lakala's revenue reached CNY5.7 billion last year and its net profit rose 31 percent to CNY606 million, according to its prospectus. The company expects to post CNY5.4 billion in revenue and CNY70 million in net profit this year, according to its general manager's work report.
Editor: Emmi Laine