April 16, 2014 / 9:36 AM / 4 years ago

CITIC Pacific says to buy parent's main unit for $36.5 bln

HONG KONG, April 16 (Reuters) - 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 Fahmy

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