China Finance Online to buy 85% stake in Daily Growth Investment
Shares of China Finance Online Co. Ltd. (Nasdaq: JRJC), a market information provider, are up on its announcement before the opening bell that the company agreed to buy an 85% stake in Daily Growth Investment Co. Ltd. for $3 million. Daily Growth is a 35-year-old brokerage firm based in Hong Kong.
Under the agreement, China Finance will retain the right to buy the remaining 15% stake in Daily Growth within five years.
"By acquiring and fully integrating Daily Growth Investment with our existing resources, particularly the vast investor base of our premium websites jrj.com and stockstar.com, our goal in the long run is to provide a diversified portfolio of brokerage and informational services to our users,” China Finance CEO Zhiwei Zhao said in a statement.
The deal is subject to approval by Hong Kong regulators. The companies agreed to the deal on Sept. 7, China Finance said, and are expecting to close by late December.
China Finance shares are up $0.27, or 2%, at $13.89 in pre-market trading.
