Haitong surges as broker eyes buying bank
Print Edition
SHARES of Haitong Securities surged by the daily limit yesterday after China’s second largest brokerage by market value said it is in talks to buy a Portuguese investment bank.
Haitong International Holdings Ltd, the broker’s wholly-owned subsidiary, is discussing the purchase of Banco Espirito Santo de Investimento, an investment banking unit of Portugal-based lender Banco Espirito Santo, from Novo Banco SA, Haitong said in a filing to the Shanghai Stock Exchange late Thursday.
Shares of Haitong soared 10 percent to 17.93 yuan (US$2.9) yesterday when trading resumed after a halt on Thursday.
Its Hong Kong-listed shares also surged 12 percent to HK$19.2 (US$2.5), the highest since the broker went public on the city’s bourse in April.
“The purchase will boost our internationalization as BESI operates various businesses including corporate financing, private equity and asset management in many regions,” Haitong said in the filing.
The broker hasn’t disclosed the deal’s value but Portuguese media have valued BESI at about 400 million euros (US$494 million).
“The purchase won’t increase Haitong’s financial burden because 400 million euros only account for 13.2 percent of the broker’s cash flow as of the third quarter and 1.2 percent of its total assets,” said Daiwa Securities.
The purchase will be subject to approval of the Bank of Portugal, the European Union and Chinese regulators, according to Haitong.
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