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Ant Group Nears Bright Smart Acquisition
16 Mar
Summary
- Ant Group is close to buying Bright Smart Securities.
- Deal agreed almost a year ago for HK$2.81 billion.
- Bright Smart shares have tripled since the deal announcement.
Ant Group Co. is reportedly on the cusp of acquiring Hong Kong-listed brokerage Bright Smart Securities & Commodities Group Ltd. This significant development follows an agreement reached almost a year prior to the current date. While Ant is reportedly close to obtaining the final necessary approvals from mainland Chinese authorities, an official announcement has yet to be made.
The initial agreement, conditionally accepted in April of the previous year, involved the sale of Bright Smart Chairman Yip Mow Lum's 50.55% stake to Wealthiness and Prosperity Holding Ltd., an entity ultimately controlled by Ant. The agreed purchase price was HK$3.28 per share, amounting to HK$2.81 billion, equivalent to $360 million.
Since the announcement of this deal in April of the prior year, Bright Smart's stock performance has been remarkable, more than tripling in value to HK$9.27 per share. This surge has boosted the company's market capitalization to $2 billion. Trading of Bright Smart's shares was suspended recently following a substantial 34% jump on the preceding Friday.
