Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Caixin Global
Caixin Global
Business

Guolian Group Bids $1.3 Billion to Win Oceanwide’s Brokerage Stake

What’s new: Guolian Group, the biggest shareholder of Guolian Securities, won a protracted bidding war to buy 30.3% of Minsheng Securities for 9.1 billion yuan ($1.3 billion), beating rivals Soochow Securities Co. Ltd. and Zheshang Securities Co. Ltd.

The final price was 55% higher than the asking price of 5.9 billion yuan, according to information disclosed by the judicial auction platform of e-commerce giant JD.Com.

Guolian Group, backed by the local government of Wuxi, closed the deal to acquire 3.47 billion shares of Shanghai-based Minsheng from debt-ridden Oceanwide Holdings after 162 rounds of bidding.

Background: The shares of Minsheng were auctioned after its largest shareholder Oceanwide, a Beijing-based financial and real estate group that has been mired in debt, defaulted on a bridge loan from Shandong Hi-Speed Group Corp, a state-owned highway operator.

Oceanwide owns 3.55 billion shares of Minsheng, or 31.03%. After the auction, its holdings will decrease to 0.25%.

Guolian Group owns about 46% of Guolian Securities as its largest shareholder.

Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)

Get our weekly free Must-Read newsletter.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.