Huaxin Securities, the Chinese partner of Morgan Stanley’s securities joint venture, said it is selling a 2% stake for at least RMB 376 million ($55 million) and any potential buyer will have until July 29 to submit a bid, said Caixin.
Shanghai International Trust, JPMorgan’s local partner, said on Monday that it will cede control of its asset-management venture for RMB 241 million. Both American banks, which currently hold a 49% stake in their respective ventures, have indicated they’ll raise their interest to the maximum 51%, despite having to pay hefty premiums in both cases, reported Caixin.
The minimum asking price in Morgan Stanley’s securities venture, Morgan Stanley Huaxin Securities Co., is nearly 15 times the appraised value, according to Bloomberg calculations based on numbers in the filing. For JPMorgan’s fund venture, China International Fund Management, the price represents about a 33% premium.