Luzhou Group Ltd cancelled the acquisition of 12% stake in Huaxi Securities Co., Ltd. from Luzhou Laojiao Co., Ltd. (SZSE: 000568).
January 26, 2013 at 11:00 pm EST
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Luzhou Group Ltd agreed to acquire 12% stake in Huaxi Securities Co., Ltd. from Luzhou Laojiao Co., Ltd. (SZSE: 000568) for CNY 1.1 billion in cash on November 15, 2011. After such deal, stake in HUAXI Securities held by Luzhou Laojiao will drop from 24.99% to 12.99% and will be no longer the biggest shareholder of HUAXI Securities. For the 3 quarter ending September 30, 2011, Huaxi Securities Co., Ltd. had book value of CNY 6.01 billion and net profit of CNY 9.47 million. The deal is subject to both government and shareholder approval. Luzhou Laojiao will use the proceeds to expand the capacity of liquor businesses. The deal was approved by State-owned Assets Supervision and Administration Commission on December 22, 2011. As of December 26, 2011, the shareholders of Luzhou Laojiao approved the transaction. The transaction has been approved by Sichuan Securities Regulatory Bureau on July 26, 2012.
Luzhou Group Ltd cancelled the acquisition of 12% stake in Huaxi Securities Co., Ltd. from Luzhou Laojiao Co., Ltd. (SZSE: 000568) on January 27, 2013.
Huaxi Securities Co., Ltd. is a China-based company which is mainly engaged in securities business. The Company mainly has five segments. The Brokerage Business segment is principally engaged in stocks, securities investment funds and bond spot business. The Investment Banking Business segment is principally engaged in securities underwriting, sponsorship and financial advisory businesses. The Asset Management segment is principally engaged in aggregated asset management business, targeted asset management business and asset securitization business. The Self-operated Business segment is mainly engaged in stocks, funds and bonds. The Futures Business segment is principally engaged in the provision of futures brokerage and futures investment advisory services through its holding subsidiaries.
HUAXI SECURITIES CO., LTD. 
