* Invested $800 mln in Chinese insurer CPIC from 2005-07
* Latest sale completes Carlyle's most profitable exit
* Shares offered in range of HK$30 to HK$30.30
By Elzio Barreto and Stephen Aldred
HONG KONG, Jan 7 Carlyle Group plans to
sell its remaining stake in China's third-largest insurer CPIC
in a deal valued at up to $790 million, according to an outline
agreement seen by Reuters.
Should the sale succeed, private equity group Carlyle will
have exited the business with its largest dollar profit on an
After several stake sales in the past two years, Carlyle
will finish with a total profit of more than $4 billion, five
times the $800 million it invested in CPIC between 2005 and 2007
for a 17 percent stake.
By private equity standards, where making two times cash
paid and a few hundred million is considered a success, the CPIC
exit is an historic deal for Carlyle.
Carlyle declined to comment.
The U.S. group, among the world's biggest private equity
companies, with more than $157 billion in assets under
management, is offering 203 million Hong Kong-traded shares of
China Pacific Insurance (Group) Co Ltd (CPIC) in a
range of HK$30 to HK$30.30 per share, according to a term sheet
seen by Reuters.
Carlyle began selling down its CPIC stake in late 2010,
culminating in the current proposal.
Strong demand for insurance products in China through the
country's rising middle class, coupled with a bull market, has
led to a surge in CPIC's share price. The shares have climbed
nearly 40 percent over the past year, reaching a 52-week high
Carlyle's latest sale, if priced at the top of its range,
would take its total proceeds from CPIC share sales to $5.1
billion. That would put Carlyle's profit from the CPIC deal at
$4.3 billion, excluding any dividends Carlyle received on its
holdings, according to Reuters calculations.
Goldman Sachs and UBS have been hired as
joint bookrunners for the sale.
Carlyle has been investing in Asia for over a decade and has
a portfolio of 38 current investments in Asia, including 19 in
China, its website says.
The investment in CPIC was led by X.D. Yang, Hong Kong-based
managing director and co-head of Carlyle Asia Partners.