The State Development & Investment Corp. (SDIC), a state-owned investment holding company controlled by the central government, has agreed to buy a 57.25 percent stake in Essence Securities Ltd. for 9.4 billion yuan (US$1.5 billion), the China Securities Journal reported Friday, citing a statement released by Essence. The SDIC will buy the equity interest in the broker from China Securities Investors Protection Fund (SIPF), it said. SIPF and Essence’s three other shareholders announced on Oct. 14 they were auctioning a combined 83.89 percent stake in Essence Securities at a floor price of 5.15 yuan per share, the paper said. Analysts were quoted as saying that the corporation’s takeover will help Essence secure more licenses for financial business beyond securities and pave a way for the broker’s public listing, the report said.
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