Guolian Securities to buy Sinolink Securities

On Sunday, Guolian Securities Co. (1456.HK601456.SS) announced that it would buy Sinolink Securities Co. (600109.SS) through a stock swap.

The securities brokerage company said that it would also purchase a 7.82% share from Sinolink’s biggest shareholder Yongjin Group.

“The agreement of intent on share transfer was entered into between the Company and Guolian Securities Co. for the purpose of acquiring approximately 7.82% shares of Sinolink Securities Co Ltd. In addition, the Company and Sinolink Securities are planning to absorb and merge Sinolink Securities through share swap by issuing A shares to all the shareholders of Sinolink Securities by the company,” Guolian Securities Co. said in a letter.

According to Guolian Securities, the company is worth 39.42 billion Yuan. It is also backed by the government of the southern city Wuxi.

Sinolink’s Shanghai-listed shares fell by 10% before Guolian’s announcement.