Ping An of China takes Founder Securities, whose controlling shareholder is about to change – #stocks chatter


Ping An of China takes Founder Securities, whose controlling shareholder is about to change
On the evening of July 5, Founder Securities announced expected changes of its controlling shareholder and actual controller. According to the announcement, the controlling shareholder Founder Group and its
consortium offer Founder Property Control plan to transfer all holdings of Founder Securities to the New Founder Group (the specific name is subject to its registration in the market supervision and management department).The controlling shareholder of Founder Securities is to be changed to the New Founder Group. Ping An Life or its subordinate wholly-owned entities plan to accept the transfer of 73% to 100% of New Founder Group’s shares, and become its controlling shareholder. Ping An, as the controlling shareholder of Ping An Life, intends to control Founder Securities indirectly. The actual controller of Founder Securities is to be changed from Peking University to no actual controller.

However, after controlling Founder Securities indirectly, will Ping An of China be able to comply with the “One Shareholder One Controller” rule? If not, how to rectify? According to the rule, an institution’s shareholding fund management company cannot exceed two, and its controlling shareholder fund management company cannot exceed one. In this regard, Ping An Group has not respond to reporters yet. Some securities brokers think that, in this equity structure, Founder securities will operate independently for a period of time, because bond industry merger will not happen too fast. In addition, if Founder Securities and Ping An Securities were to restructure in the future, which path should they take has triggered discussion in the industry. At present, there are two main conjectures on the market, namely Ping An of China acquiring Founder Securities or taking apart Ping An Securities to merge with Founder Securities. Insiders think that the latter is more conducive to the development of Ping An Securities.


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