Essence Securities Co. Ltd. completed the acquisition of Sinotex Investment & Development Co., Ltd. (SHSE: 600061) in a reverse merger transaction.
February 12, 2015 at 11:00 pm EST
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Essence Securities Co. Ltd. agreed to acquire Sinotex Investment & Development Co., Ltd. (SHSE: 600061) (‘Sinotex') in a reverse merger transaction on August 7, 2014. The transaction is structured as the acquisition of Essence Securities Co. by Sinotex through an issue of 2.94 billion new Sinotex shares to 14 shareholders for CNY 6.22 each. Sinotex will raise an additional CNY 6.09 billion in a private placement to support the acquisition and replenish working capital.
The acquisition needs approval from government regulators and approval by shareholders of Sinotex Investment in a meeting to be held on December 3, 2014. On September 12, 2014, Zhongrui Guoxin Asset Management Co., Ltd.'s shareholders approved the transaction. On September 15, 2014, Beijing Haocheng Investment Management Co., Ltd.'s shareholders approved the transaction. On September 12, 2014, State Development & Investment Corporation's Board of Directors approved the transaction. On September 12, 2014, Shanghai Hangxin Investment Management Co., Ltd.'s shareholders approved the transaction. On September 15, 2014, Beijing Dechang Heyi Investment Development Co., Ltd.'s shareholders approved the transaction. On September 15, 2014, Beijing Zhongjin Guoke Venture Capital Management Co., Ltd.'s shareholders approved the transaction. On September 15, 2014, Hainan Tianyu International Investment Holdings Co., Ltd.'s shareholders approved the transaction. On September 16, 2014, Harbin Yihui Consultation Co., Ltd.'s shareholders approved the transaction. On September 17, 2014, Shenzhen Yuanzhi Investment Co., Ltd.'s General Manager office approved the transaction. On September 17, 2014, Harbin Institute of Technology Bada Group Co., Ltd.'s Board approved the transaction. On September 18, 2014, Henan Xingye Guarantee Credit Co., Ltd.'s shareholders approved the transaction. On September 20, 2014, China Railway 22nd Bureau Group Co., Ltd.'s Board approved the transaction. On September 22, 2014, China Coop Investment Group's shareholders approved the transaction.
On October 14, 2014, China Securities Investor Protection Fund Limited Liability Company's Board approved the transaction. The deal has been approved by the Board of Directors of Sinotex Investment. The transaction received approval from SASAC as on December 2, 2014. As of December 3, 2014, the transaction has been approved by shareholders of Sinotex Investment & Development. As of January 6, 2015, Sinotex Investment & Development Co., Ltd received approval from China Securities Regulatory Commission.
Huatai United Securities Co., Ltd. acted as financial advisor for Sinotex Investment & Development. Jia Yuan Law Offices acted as the legal advisor in the transaction.
Essence Securities Co. Ltd. completed the acquisition of Sinotex Investment & Development Co., Ltd. (SHSE:600061) in a reverse merger transaction on February 13, 2015.
SDIC Capital Co., Ltd, formerly SDIC Essence (Holdings) Co., Ltd, is a China-based company principally engaged in the securities business. The Company operates through five segments. The Brokerage segment manily includes brokerage business of securities and futures and the agent sales of financial products. Entrusted Asset Management segment mainly includes the pooled asset management, directional asset management and specific asset management. Proprietary Business segment mainly invests the Companyâs funds in equity securities, fixed income securities and derivatives and is involved in the market making business in the new over-the-counter (OTC) market. Investment Banking segment includes stock financing, bond financing, mergers and acquisitions and financial advisory services. Margin Trading segment includes margin trading, stock pledged repo and agreed-to-repurchase securities.
SDIC CAPITAL CO.,LTD 
