China's Yintech To Acquire Forthright Securities

(RTTNews) - Yintech Investment Holdings Limited (YIN), a provider of investment and trading services for individual customers in China, announced Wednesday that it has entered into a definitive agreement to acquire Forthright Securities Co. Ltd. from Ming Yan, a co-founder and director of Yintech who held 21.4% of the company as of June 30.

The proposed transaction is expected to be completed in October for a total consideration of approximately $2.1 million, subject to customary closing conditions and adjustments.

Yintech said it has received approval from the Securities and Futures Commission of Hong Kong for the proposed transaction.

Forthright Securities is a licensed corporation permitted to carry on Type 1 regulated activity under the Securities and Futures Ordinance. It is regulated by the SFC and provides brokerage services to individual and institutional customers for a variety of securities and financial products traded on global capital markets, including stocks, bonds and ETFs.

As of August 31, Forthright Securities had total client assets of approximately HK$300 million.

Wenbin Chen, Chairman and CEO of Yintech, said, "This transaction is another step in our strategy to develop new businesses and explore new opportunities as we steadily expand our service offerings into medium and low risk products."