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Huijin pares stake in CICC
Posted on Thursday, 12 April 2018 10:01
The largest shareholder of China International Capital Corporation (CICC) is publicly selling a 9.5 per cent stake worth CNY 5.41 billion (USD 861.63 million) in the markets at the time of the announcement.
Central Huijin Investment is offering 398.50 million domestic shares on Beijing Financial Assets Exchange as per the relevant laws and regulations on transfer of state-owned assets.
The investment vehicle has not yet entered into an agreement with parties interested in the stake with an appraised value of CNY 5.05 billion.
Huijin directly held a 55.7 per cent equity interest, as of 11th April 2017, and said the sale will diversify the shareholding structure of the equities-to-wealth management group.
News of the proposed divestment comes just a couple of days after CICC and US asset manager Krane Funds Advisors launched their first fund together on Hong Kong’s bourse.
State-owned, Beijing-headquartered Huijin was established in December 2003 as an investor in major China-held financial enterprises on behalf of the government.
In September 2007, the ministry of finance issued special treasury bonds and acquired all the shares of the entity from the People’s Bank of China.
The department then injected these Huijin stocks into China Investment Corporation as part of its initial capital contribution.
Last year, the vehicle increased its stake in CICC by selling China Investment Securities to the investment bank for CNY 16.70 billion, satisfied through the issue of1.68 billion consideration shares.
As at 31st December 2017, Huijin vehicle directly or indirectly owned a 58.7 per cent interest.
Zephyr, the M&A database published by Bureau van Dijk, shows the sale would be the tenth-largest minority stake deal targeting a Chinese mainland-based company announced so far this calendar year.
© Zephus Ltd