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Credit China FinTech consortium to buy 36.58% stake in Ping An Securities

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Credit China FinTech consortium to buy 36.58% stake in Ping An Securities

Credit China FinTech Holdings Ltd. and its subsidiaries, in concert with HongDa Financial Holding Ltd., will acquire a 36.58% equity interest in Ping An Securities Group (Holdings) Ltd. for a total consideration of HK$663.5 million, or 9.6 cents per share.

Well Up (Hong Kong) Ltd., the actual acquirer of the stake, is wholly owned by King Focus International Ltd., which is in turn partly owned by subsidiaries of Credit China FinTech and HongDa Financial.

Completion of the deal is conditional upon shareholder and regulatory approval. Following completion, the consortium will be required to make a conditional mandatory general cash offer for all the issued shares of Ping An Securities.

Each of the directors of Ping An Securities Group may resign from the board after deal completion. Well Up intends to nominate new directors to the board, as well as to maintain the listing status of the company's shares.

With the proposed deal, Credit China FinTech is seeking to establish a presence in Hong Kong and tap the securities industry in the city.

Meanwhile, Ping An Securities Group will issue HK$200 million worth of convertible bonds, to be subscribed for by Topsource International Holding Co. Ltd., a concerted party of Well Up.

The proceeds from the new convertible bond issue will be used for the redemption of the outstanding principal amount of 2017 convertible bonds and to increase the working capital of the group.

Topsource is wholly owned by Shanghai Xinhua Publishing Group Ltd., which is ultimately 61% owned by State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government.