Backed by Wuhan state-owned assets, Kyushu securities may usher in new development opportunities.
The equity issue of Kyushu securities has always been concerned by the market. Yesterday, the question had a preliminary answer. Jiuding group announced yesterday that it was ready to sell 72.5% equity of Kyushu Securities for 4.9 billion yuan. The transferee of the equity is a state-owned enterprise in Wuhan. Among them, the subsidiary of Wuhan Financial Holding Group plans to acquire 50% equity of Kyushu securities. Kyushu securities will become the first securities company controlled by state-owned assets in Wuhan.
It is understood that after the completion of this M & A, Wuhan financial holding group and its M & a related parties will simultaneously start capital increase for Kyushu securities. After shareholders’ capital increase, it will help to break the capital bottleneck of Kyushu securities, improve its comprehensive competitiveness and anti risk ability, and help Kyushu securities develop healthily and rapidly. Wuhan Financial Holding Group will support Kyushu securities to make use of the advantages of shareholders of local state-owned enterprises such as Wuhan financial holding group, give full play to the professional value of comprehensive securities companies, and strengthen services for “specialized and special new” enterprises in Wuhan region.
Jiuding group sold 72.5% equity of Kyushu Securities for 4.9 billion
yesterday, Jiuding group announced that the company planned to sell the equity of its holding subsidiary Kyushu securities
Jiuding group and its subsidiaries intend to transfer 2443250000 shares of Kyushu securities, accounting for 72.5% of the total share capital of Kyushu securities, with a transaction price of 4886.5 million yuan. Among them, Jiuding group transferred 233345000 shares of Kyushu securities, accounting for 69.24% of the total share capital of Kyushu securities; Dazi Zhonghe Kyushu investment center, a subsidiary of Jiuding group, transferred 109.8 million shares of Kyushu securities, accounting for 3.26% of the total share capital of Kyushu securities.
Among the transferee of this transaction, Wuhan development and Investment Co., Ltd. will hold 50% and Wuhan Optics Valley Financial Holding Group Co., Ltd. will hold 12.5%; Wuhan SANHENG Investment Holding Group Co., Ltd. will hold 5%; Wuhan Zhongtian Yucheng Business Management Co., Ltd. will hold 5%.
After the completion of this transaction, Jiuding group will still hold 556.75 million shares of Kyushu securities, accounting for 16.52% of the total share capital of Kyushu securities.
Jiuding group said that the purpose of this transaction is to further implement the company’s business strategy of de financing, deleveraging and focusing on the main business of investment, which is conducive to further reducing the asset liability ratio and further focusing on the main business of investment.
Jiuding group said that the price of 72.5% equity of Kyushu securities in this transaction was 4.89 billion yuan, the corresponding investment cost was about 2.84 billion yuan, the profit of this investment was about 2.05 billion yuan, and the total return on investment was about 41.9%.
As of December 31, 2021, the total assets of unaudited Kyushu securities were RMB 6.604 billion, and the net assets were RMB 3.799 billion. In 2021, the operating revenue was RMB 713 million and the net profit was RMB 126 million.
Wuhan Municipal State owned assets first holding comprehensive securities firm
The Chinese reporter of the securities firm noted that the four transferees were all state-owned enterprises in Wuhan. Among them, the actual controller of Wuhan development and Investment Co., Ltd., which plans to transfer 50% of the shares of Kyushu securities, is Wuhan SASAC and is also a wholly-owned subsidiary of Wuhan financial holding group.
It is understood that in the 1990s, securities companies in Wuhan were quite popular in the country. Later, with Huatai Securities Co.Ltd(601688) taking over Asian Securities and Gf Securities Co.Ltd(000776) integrating Wuhan Securities, Wuhan state-owned assets Co., Ltd. lost control of securities companies. The lack of state-controlled financial institutions leads to the limited ability to regulate local finance and give full play to the aggregation effect of capital resources.
At present, there are two local securities companies in Wuhan, and there is no securities company controlled by Wuhan state-owned assets. The acquisition of Kyushu securities by Wuhan Financial Holding Group fills this gap.
According to Wuhan local media Changjiang cloud, after the completion of this M & A, Wuhan financial holding group and its M & a related parties will simultaneously start capital increase for Kyushu securities. According to the classification results of securities companies published by the CSRC, Kyushu securities is rated BB. After shareholders’ capital increase, it will help to break the capital bottleneck of Kyushu securities, improve its comprehensive competitiveness and anti risk ability, and help Kyushu securities develop healthily and rapidly.
The relevant person in charge of Wuhan financial holding group said that it would support Kyushu securities to optimize market-oriented operation, improve corporate governance, improve assets and business scale, improve market image, and build itself into a high-quality securities firm with excellent brand, sufficient capital, stable operation and strong risk control. Support Kyushu securities to make use of the advantages of shareholders of local state-owned enterprises such as Wuhan financial holding group, give full play to the professional value of comprehensive securities companies, and strengthen services for “specialized and special new” enterprises in Wuhan.
It is understood that the merger and acquisition of comprehensive securities companies has always been an important strategy of Wuhan financial holding group. In 2021, the group carried out evaluation and comparative analysis on some Chinese securities companies, and successively promoted the substantive negotiation and adjustment of mergers and acquisitions of a number of target securities companies. The acquisition of Kyushu securities will enrich the group’s financial business layout, extend the types of comprehensive financial services, provide high-quality and efficient comprehensive financial services for the real economy, and meet the diversified development needs of regional financial formats.
In the national competition for the new important financial license of financial holding company, Wuhan financial holding group acted rapidly. With the acquisition of Kyushu securities, the group will have three licensed national financial institutions, belonging to three types respectively. The group is also the largest shareholder of Hankou bank and Wuhan Rural Commercial Bank, which means that Wuhan financial holding group is closer to the index requirements for applying for financial holding company license and is expected to become the first licensed financial holding company in Hubei Province.
another shareholder also tried to transfer the equity of Kyushu securities
Jiuding group transferred most of the equity of Kyushu securities this time. Petrochina Company Limited(601857) chemical group, another shareholder of Kyushu securities holding 10.98%, was also transferring the equity of Kyushu securities.
In October last year, the Beijing Equity Exchange announced that Petrochina Company Limited(601857) chemical group plans to transfer 370 million shares of Kyushu securities (accounting for 10.98% of the total share capital), with a transfer reserve price of 474 million yuan. In other words, Petrochina Company Limited(601857) chemical group is preparing to liquidate the equity of Kyushu securities. At present, this transfer information has been taken off the shelf. At the beginning of 2017, Petrochina Company Limited(601857) chemical group, as a strategic investor, invested 407 million yuan in 10.98% shares of Kyushu securities.
At the end of October last year, Qinghai Securities Regulatory Bureau issued a punishment decision. Qinghai securities regulatory bureau decided to take administrative supervision measures of issuing warning letters to Kyushu securities. According to the investigation, Kyushu securities signed the supplementary agreement on capital increase and share expansion of Kyushu Securities Co., Ltd. with Petrochina Company Limited(601857) chemical group, Tongchuang Kunwu Jiuding Investment Holdings Co.Ltd(600053) Management Group Co., Ltd., Tongchuang Kunwu Jiuding Investment Holdings Co.Ltd(600053) Holding Co., Ltd. and other parties in March 2018.
The agreement has the nature of “gambling”, which may lead to the transfer of equity or affect the operation of securities companies under specific conditions. Kyushu securities failed to report the above matters to Qinghai Securities Regulatory Bureau in time, and did not report until June 9, 2021, in violation of relevant regulations.
Qinghai securities regulatory bureau decided to take administrative regulatory measures to issue warning letters to Kyushu securities and take regulatory talk measures to the chairman of Kyushu securities.
