(Yicai Global) Oct. 30 -- Citic Securities, a unit of state-backed CITIC Group, got the nod from China Securities Regulatory Commission today to buy all of Guangzhou Securities for CNY13.5 billion (USD1.9 billion), according to the Securities Times.
The Shenzhen-based investment bank, which is China's largest, announced the acquisition plan in January, offering 809.8 million shares at CNY16.62 (USD2.35) each to Guangzhou Securities' owner, Guangzhou Yuexiu Financial Holdings Group, which will become Citic Securities second-largest shareholder after the issue with a 6.14 percent stake.
Citic Securities [SHA:600030] and Yuexiu Financial [SHE:000987] both halted trading today, pending the result of the CSRC review.
Citic Securities closed at CNY21.87 yesterday, down 2.15 percent, with a market value of CNY265 billion. Yuexiu Financial closed 1.98 percent lower at CNY8.92 with a CNY24.6 billion market cap.
Editor: Ben Armour