UPDATE 1-CITIC Group plans to take CIFH private

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HONG KONG, June 11 (Reuters) - CITIC International Financial Holdings Ltd 0183.HK (CIFH) said on Wednesday its major shareholder, CITIC Group, planned to privatise the Hong Kong-listed company.

The news comes after BBVA (BBVA.MC), Spain's second-largest bank, said on June 3 it had agreed to pay about 800 million euros ($1.25 billion) to double its stakes in Chinese bank CITIC (0998.HK) and its international arm, CIFH, which would be delisted as part of the deal.

CITIC Group would offer shareholders one China CITIC Bank Corp Ltd H share plus HK$1.46 cash for each CIFH share they own.

The offer represents a 21 percent premium over CIFH's last trading price of HK$5.70, the company said in the statement.

The CITIC Bank shares were based on the stock's closing price of HK$5.44 on June 2.

CIFH said the offer would involve the issue of some 1.746 billion CITIC Bank H shares and HK$2.592 billion cash.

A cash offer would also be made to option and bond holders and up to 1.783 billion CITIC Bank H shares and HK$2.604 billion in cash would be involved, it added.

CITIC Bank is currently 62.33 percent-owned by CITIC Group, 15 percent-owned by CIFH and 4.83 percent held by Spain's BBVA.

The shares owned by CITIC Group and BBVA would not be included in the privatisation deal, the statement said.

CITIC Group and BBVA intended to continue the core business of CIFH in banking and financial services after the privatisation, CIFH said.

Trading in shares of CIFH, which was suspended on June 3, will resume on Wednesday.

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BBVA said earlier in June it would raise its stake in CITIC (601998.SS) to about 10.07 percent from 5 percent and its stake in CITIC International Financial Holdings Ltd 0183.HK to 30 percent from 15 percent. (US$1=HK$7.8) (Reporting by Donny Kwok; Editing by Anne Marie Roantree)