HONG KONG, April 16 China's CITIC Pacific
has agreed to buy the main operating unit of its
parent, state-backed CITIC Group, for 226.93 billion yuan ($36.5
billion) in a stock and cash deal.
CITIC Pacific will pay 49.92 billion yuan ($8 billion) in
cash and issue shares worth 177.01 billion yuan to CITIC Group,
the CITIC Pacific said in securities filing with the Hong Kong
stock exchange on Wednesday.
Under the deal, first flagged last month, CITIC Pacific will
acquire CITIC Ltd, which has businesses in China ranging from
real estate to banking, securities, infrastructure, energy,
natural resources and engineering. It made a net profit of 34.3
billion yuan in 2013.
CITIC Group was established in 1979 by Rong Yiren, one of
the few industrialists to stay behind in the mainland after the
1949 revolution. The company was set up with the support of
former leader Deng Xiaoping, and now has 11 stock market-listed
entities, including commercial lender China CITIC Bank Corp.
($1 = 6.2220 Chinese Yuan)
(Reporting by Elzio Barreto and Denny Thomas; Editing by Miral