Shares of Bright Smart Securities & Commodities Group soared by as much as 60.7% on Monday after trading resumed, following news that Ant Group had agreed to purchase a 50.55% stake in the Hong Kong-based brokerage for HK$2.81 billion ($362.26 million).
The stock hit a new record high of HK$4.90, marking its highest price since its debut in August 2010. The shares later closed up by 33.4%, in contrast to a slight dip of 0.5% in the Hang Seng Index.
In a joint statement, the companies revealed that Bright Smart chairman Yip Mow Lum will sell 857.98 million shares to Ant Group’s Wealthiness and Prosperity Holding at HK$3.28 per share. As part of the deal, Ant Group will be required to make an unconditional mandatory cash offer for all outstanding shares.
Ant Group, which is backed by Alibaba’s founder Jack Ma, has stated that it plans to keep Bright Smart listed on the Hong Kong Stock Exchange. The company also clarified that no major changes to the brokerage’s operations are anticipated, despite the significant ownership stake. Bright Smart’s market value stands at $903.61 million.
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