JD to acquire controlling stake in Chinese brokerage
Chinese GP JD Capital plans to acquire a 51% stake in Teemrise Securities, a Chinese brokerage firm, for RMB364 million ($59 million).
JD, formerly Jiuding Capital, will invest in Teemrise using its own working capital. The firm will rebrand Teemrise as Jiu Zhou Securities upon completion of the transaction, according to a regulatory filing.
Founded in 2002, Teemrise has 17 branches in China. Guangzhou Securities was the largest shareholder before JD's investment, with an 80.47% interest in the company.
The private equity firm said it's optimistic on the growth of the securities industry in China. The deal allows two parties to combine existing businesses as part of efforts to help Teemrise transform its operation.
JD wants to become a "mega asset management" firm by aggressively diversifying its business across multiple platforms. This includes operating in the mutual fund space.
The transaction is pending for regulatory approval.
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