UBS Securities' state-owned shareholders seek 'clearance transfer'!
According to information disclosed by the Beijing Property Rights Exchange, Beijing State owned Assets Management Co., Ltd. (referred to as "Beijing State owned Assets") has listed for the transfer of 33% equity of UBS Securities, with a transfer price of 1.537 billion yuan. The listing period will last until December 23 this year.
Screenshot of the official website of Beijing Property Rights Exchange
According to Time Finance, UBS Securities responded by saying, "UBS AG (hereinafter referred to as' UBS') increased its stake in UBS Securities to 67% in 2022. As previously disclosed, the process of UBS further increasing its stake in UBS Securities to 100% is underway
UBS Securities was established in 2006 and is a securities company jointly funded by Beijing Guoxiang Asset Management Co., Ltd., UBS, China Construction Bank Investment Co., Ltd., China Development and Investment Corporation, COFCO Corporation, and International Finance Corporation after the restructuring of the original Beijing Securities Co., Ltd.
From 2011 to 2022, multiple shareholders of UBS Securities have successively withdrawn. As of now, the major shareholder of UBS Securities is UBS, holding 67% of the shares; The second largest shareholder is Beijing State owned Assets, holding 33% of the shares.
Or become a wholly foreign-owned enterprise?
Why does Beijing State owned Assets need to clear its holdings of UBS Securities equity? According to reports from securities firms in China, some analysts believe that this may be related to the integration of UBS Group's business in China after acquiring Credit Suisse.
After the above-mentioned merger and acquisition transaction, Credit Suisse, the original controlling shareholder of Credit Suisse Securities, was merged and absorbed, and the actual controlling shareholder of Credit Suisse Securities was also changed to UBS Group. But as is well known, due to the limitation of one participant, one controller, UBS Group is unable to simultaneously control two securities firms in China.
Therefore, on June 24th of this year, UBS Group announced that it had reached a tripartite agreement with Beijing State owned Assets to sell a total of 85.01% equity of Credit Suisse Securities, together with Fangzheng Securities. UBS Group sold its 36.01% equity of Credit Suisse Securities to Beijing State owned Assets for a consideration of $91.35 million. Founder Securities also sold its 49% stake in Credit Suisse Securities to Beijing State owned Assets for RMB 885 million.
On July 11th, the China Securities Regulatory Commission issued a decision to accept the change of major shareholder of Credit Suisse Securities. On November 8th not long ago, the China Securities Regulatory Commission provided nine feedback opinions on the transaction.
It is worth noting that after the completion of this transaction, UBS Group and Beijing State owned Assets will hold 14.99% and 85.01% of the equity of Credit Suisse Securities, respectively, which is exactly opposite to the holding situation of UBS Securities.
Industry insiders predict that with the case of Goldman Sachs (China) ahead, UBS Securities may further trade with Beijing State owned Assets to seek a wholly foreign-owned securities license, and Beijing State owned Assets can further increase its stake in Credit Suisse Securities.
UBS Securities Chairman appointed
According to the official account of UBS Securities, with the approval of the board of shareholders and the board of directors, Hu Zhiji, the former chairman of Credit Suisse Securities, has served as the vice chairman of UBS Securities and the chairman of UBS Global Investment Banking Department in China since July 11.
Hu Zhiling has nearly 30 years of experience in the financial industry and has held various important management positions, including Head of Investment Banking at Credit Suisse China, Vice Chairman of Credit Suisse China, CEO of Credit Suisse China, and Chairman of Credit Suisse Securities (China). On September 16th of this year, Hu Zhiling was appointed as the President of UBS China.
It is worth noting that on the official website of UBS Securities, Hu Zhiling's position has been changed to Chairman.
UBS Securities official website
In terms of performance, UBS Securities achieved a revenue of 955 million yuan and a net profit of 18.9108 million yuan in 2023. As of the end of last year, the company had total assets of 13.638 billion yuan and total liabilities of 11.30 billion yuan. In the first three quarters of this year, UBS Securities achieved a revenue of 770 million yuan and a net profit of 91.3927 million yuan. Among them, the net profit far exceeded last year's total.
This article combines the official websites of Beijing Property Rights Exchange, UBS Securities, Securities China, and Times Finance
