CITIC Securities transfer CITIC Investment 53% stake

Citic Securities (600030) announced today that to meet regulatory requirements, the company intends to transfer the holding of Citic Construction securities 53% of the equity. According to the announcement, the shares of this subject will be transferred through the equity exchange, the total price is 8.586 billion yuan, corresponding to CITIC investment per share of the transfer price of 6 yuan, through the public auction to determine the final price; at the same time, in order to facilitate the transaction, this part of the equity exchange on the listing will be split into 45% and 8%　　The transfer price can be paid in installments by the two parts synchronously.　　After the transfer is completed, Citic Securities will still hold Citic investment 7% of the shares, so as to meet the relevant regulatory requirements, a solution with CITIC investment competition. Data show that CITIC Securities and China Bank Investment Co., Ltd. in 2005 jointly funded the establishment of CITIC Investment, the two sides of the contribution ratio of 60% and 40% respectively.　　Up to now, Citic Investment registered capital of 2.7 billion yuan, with a full licence for securities, securities rated as a Class A. It is worth mentioning that Citic built excellent asset quality and strong profitability, or the future of the target equity transfer is full of optimism.　　Audited data show that as of September 30, 2009, CITIC Investment net assets as high as 6.691 billion yuan, the first three quarters of the total revenue reached 4.496 billion yuan, net profit of 2.075 billion yuan. The price of the equity transfer is also relatively low.　　According to the net assets data at the end of September 2009, the equity transfer of this sub-listing PB is only 2.42 times times.　　Industry insiders pointed out that the current domestic integrated brokerage license is scarce, the transfer of controlling rights must be accompanied by a premium to CITIC investment in the quality of assets, the current listing price is relatively low. According to previous media reports, Citic Securities will transfer Citic investment to the parent company Citic Group or Lenovo Group. However, according to CITIC Securities announcement, the subject of the stake in the assignee is not yet determined.　　Therefore, it remains to be seen where the holding power of CITIC investment will be attributed. In addition, through the transfer of the subject's equity, Citic Securities has made great progress on the road of "one participation and one control".　　Relevant information shows that CITIC Securities holdings Citic Investment, Citic Wantong, Citic Gold Tong Three securities companies, while holding the Chinese fund. According to Citic Securities's previous announcement, the company will deal with the relevant overrun stakes as soon as possible in order to meet the "one-touch" regulatory requirements.