SHANGHAI, July 20 China Investment Corp (CIC),
the country's $200 billion sovereign wealth fund, has agreed to
buy a 40 percent stake in investment firm CITIC Capital Holdings
Ltd, the official China Securities Journal reported on Monday.
CIC will buy new shares to be issued by Hong Kong-based CITIC
Capital, in which CITIC Pacific (0267.HK) and CITIC International
Financial Holdings Ltd each hold 50 percent, the newspaper said,
citing a letter sent to CITIC Capital investors. It gave no
figure for the value of the deal.
Both CITIC Pacific and CITIC International are units of CITIC
Group, China's biggest financial conglomerate.
CIC has shown renewed interest in overseas acquisitions, as
global stock markets rebound in the wake of pro-growth fiscal and
monetary policies aimed at pulling the world economy out of the
worst financial crisis in half a century.
CITIC Capital, established in 2002, operates businesses
including private equity investment, real estate funds,
structured finance and alternative investments, the newspaper
Sources close to the situation told Reuters in February that
CIC was in talks to buy up to half of CITIC Capital in a deal
that one of the sources said could be worth several hundred
million dollars. [ID:nHKG22741]
($1=7.749 Hong Kong Dollar)
(Reporting by Samuel Shen and Edmund Klamann)