Everbright Securities Co., China’s eighth-biggest brokerage, is in the final stages of talks to acquire the securities and wealth management businesses of Sun Hung Kai & Co. for about US$500 million.
Everbright Securities will buy about 70 percent of Sun Hung Kai Financial Ltd., a unit of the Hong Kong-based company, Bloomberg reported Tuesday, citing people with knowledge of the matter.
The deal is expected to be announced shortly in Hong Kong.
An acquisition would help Everbright bolster its presence in Hong Kong after the introduction of a Shanghai trading link that allows foreigners to buy a net 13 billion yuan (US$2.1 billion) of mainland shares each day.
Officials said in January they’re discussing an expansion of the program to Shenzhen.
The acquisition by Everbright Securities does not include United Asia Finance Ltd., Sun Hung Kai’s consumer lending unit.
Everbright Securities said net income rose 907 percent to 2.07 billion yuan last year, according to a preliminary earnings report last month.
Its Hong Kong unit, set up in 2010 with HK$2 billion (US$258 million) of registered capital, offers stock trading, underwriting and investment-management services, according to the company.
Everbright Securities is 33.3 percent owned by Hong Kong-listed China Everbright Ltd., whose operations include private equity investment, asset management and aircraft leasing, according to China Everbright’s website.
Sun Hung Kai & Co. provides wealth management, securities brokerage and consumer finance in 180 locations across Hong Kong, Macau and China, according to company statements.
It posted net income of HK$610.3 million (US$79 million) for the six months to June.
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