Gelonghui reported on December 13 that Soochow Securities (601555.SH) announced that Soochow Securities and Soochow Innovation Capital together Hold 20% of the equity in Suzhou Asset Management.
Suzhou Asset Management plans to increase its registered capital for existing Shareholders. Soochow Securities will jointly increase capital in Suzhou Asset Management with its wholly-owned subsidiary Soochow Innovation Capital, Guofang Group, and other related parties at an assessed price (1.52 yuan/share), of which Soochow Innovation Capital contributes with its own funds of 239.1536 million yuan. Soochow Innovation Capital participates in the capital increase at a price that is 15.11% higher than the book net asset value of Suzhou Asset Management. Some Shareholders in this capital increase of Suzhou Asset Management intend to waive their participation, therefore after this capital increase, the combined equity proportion held by Soochow Securities and Soochow Innovation Capital in Suzhou Asset Management will increase from 20% to 20.43%.
After this capital increase, the Suzhou Asset Investment Management Group Co., Ltd. (hereinafter referred to as "Asset Management Group") will issue new equity to acquire the equity held by the Suzhou Municipal Finance Bureau, Soochow Securities and Soochow Innovation Capital, Guofang Group, and Soochow Life Insurance Co., Ltd. (hereinafter referred to as "Soochow Life Insurance") in Suzhou Asset Management (hereinafter referred to as "equity integration"). After the equity integration, the Suzhou Municipal Finance Bureau, Soochow Securities and Soochow Innovation Capital, Guofang Group, and Soochow Life Insurance will become Shareholders of the Asset Management Group and indirectly Hold the equity of Suzhou Asset Management through the Asset Management Group; among them, Soochow Securities and Soochow Innovation Capital together Hold 1,978.0336 million yuan worth of equity in the Asset Management Group, with a shareholding ratio of 35.45%.
