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China's CIC to buy 40 pct of CITIC Capital -paper
July 20, 2009 / 12:13 AM / 8 years ago

China's CIC to buy 40 pct of CITIC Capital -paper

SHANGHAI, July 20 (Reuters) - 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 said.

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] (US$1=6.832 Yuan) ($1=7.749 Hong Kong Dollar) (Reporting by Samuel Shen and Edmund Klamann)

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