China Life, BOC Investment eye BBMG HK IPO-source

HONG KONG, July 7 (Reuters) - China Life (2628.HK) and BOC Investment, a unit of Bank of China (3988.HK) (601988.SS), are expected to be cornerstone investors in BBMG Corp's $700 million Hong Kong initial public offering, according to a source close to the matter.

Each of the investors will take about $50 million worth of shares, the source said, adding that the final list of cornerstone investors had yet to be confirmed.

An asset management unit of China Life is in talks to invest in BBMG, a source close to the asset management unit said.

JP Morgan (JPM.N), Macquarie Group (MQG.AX) and UBS (UBSN.VX) are joint bookrunners for the issue.

BBMG, one of China's top construction materials makers, is planning to sell 933.33 million shares with an over allotment of up to 140 million shares at prices to be determined later.

Three-quarters of the proceeds will be used to fund its expansion plans, with remainder to repay bank loans and for working capital, according to a term sheet released on Monday.

The pricing of the offer will be fixed on July 23 with trading to start on July 29.

(US$1=HK$7.75)

(Reporting by Donny Kwok; editing by Chris Lewis)

((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters Messaging: donny.kwok.reuters.com@reuters.net))

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