Citic Securities Co., the Chinese investment banking unit of investment company CITIC Group, plans to acquire brokerage services company Guangzhou Securities Co. for as much as 13.5 billion yuan ($2 billion).
Guangzhou Yuexiu Finance Holdings will acquire 793.2 million shares at $2.5 each and its unit to acquire all stake in Guangzhou Securities.
Citic Securities said that the acquisition will boost its footprint in southern China.
As part of the deal, Guangzhou Securities will divest 99 percent stake in its Guangzhou Futures and 24 percent in fund-management company Golden Eagle before the deal.