Guotai Haitong moves to take offshore unit private in $3.6 billion deal

Guotai Haitong Securities has proposed taking its Hong Kong-listed offshore arm private in a deal valued at HK$28.59 billion (approximately $3.64 billion). The conditional offer, disclosed in a filing on Friday, is part of the parent company's broader effort to streamline its international operations following last year's landmark merger between Guotai Junan and Haitong Securities.

Under the proposal, shareholders of Guotai Junan International will receive HK$3 in cash for each cancelled share from Guotai Haitong Financial Holdings, the platform that houses the parent's China operations. The offer price represents a premium of 44.2% over the stock's last closing price on July 23, before trading was halted.

The company said the privatisation would allow public investors to exit an illiquid stock in bulk without putting downward pressure on market prices. Following the completion of the deal, the offshore unit would be delisted from the Hong Kong bourse.

The move marks the latest consolidation step by the controlling shareholder after the state-backed brokers completed their share-swap merger in early 2025. That transaction, which saw Haitong delisted from both the Shanghai and Hong Kong exchanges, created China's largest brokerage by net assets, overtaking Citic Securities.

Guotai Junan International has applied for its shares to resume trading on August 10.