Western Securities(SZ:002673) Sou Hu Cai Jing·2025-08-16 04:13Core Viewpoint - Western Securities has received approval from the China Securities Regulatory Commission (CSRC) to become the major shareholder of Guorong Securities, acquiring 64.5961% of its shares, which indicates a significant consolidation in the securities industry [1][5]. Group 1: Acquisition Details - Western Securities will acquire 1,151,433,439 shares of Guorong Securities at a price of 3.3217 yuan per share, totaling 3.825 billion yuan, which values Guorong Securities at approximately 6.0435 billion yuan, reflecting a premium of 20.43 billion yuan (51.06% increase) over its net asset value [4]. - The transaction involves the transfer of shares from eight existing shareholders, with the largest shareholder, Beijing Chang'an Investment Group, transferring 42.07% of its stake [4]. - After the acquisition, Western Securities will hold 64.5961% of Guorong Securities, while Chang'an Investment will remain the second-largest shareholder with 28.53% [4]. Group 2: Regulatory and Internal Approval - The acquisition proposal was approved by Western Securities' shareholders on December 6, 2024, indicating a smooth internal decision-making process [5]. - The CSRC's approval process was also efficient, with the application being accepted in February 2025 and feedback provided, which Western Securities addressed satisfactorily [5]. Group 3: Background of Guorong Securities - Guorong Securities has faced challenges, including a failed IPO attempt and financial pressures due to a buyback obligation from its major shareholder, leading to the decision to seek a new owner [6][7]. - The company has recently turned a profit, achieving a net profit of 0.42 billion yuan in 2023 and projected to increase to 0.86 billion yuan in 2024, making it a more attractive acquisition target [7]. Group 4: Financial and Operational Synergies - Post-acquisition, the combined assets of Western Securities and Guorong Securities will total approximately 114.8 billion yuan, with total equity around 33.3 billion yuan, representing increases of 19.7% and 14.8% respectively [9]. - The combined revenue is expected to reach approximately 7.831 billion yuan, reflecting a 16.7% increase, while net profit is projected to be around 1.484 billion yuan, a 5.8% increase [9]. - The geographical presence of both firms complements each other, with Western Securities focusing on the northwest and central China, while Guorong Securities is concentrated in Inner Mongolia and northern regions [9].