CITIC Pacific Raises HK$39.5B To Fund Parent Acquisition

Hong Kong-listed Chinese conglomerate CITIC Pacific Limited says that 15 institutional investors have agreed to subscribe its shares at HK$13.48 per share for a total of HK$39.5 billion, according to a regulatory filing the company submitted on May 14.

The share sale is part of CITIC Pacific’s HK$282.4 billion acquisition of its parent CITIC Group Corp’s main operating business, announced in late March.

CITIC Pacific said that it would pay for the acquisition with HK$220 billion own shares and HK62.1 billion in cash, which would be raised by selling shares to institutional investors.

The latest share sale includes the participation of China’s National Social Security Fund, which agreed to purchase HK$16.8 billion shares. Other Chinese institutions include Insurer AIA Group Ltd, SAFE Investment Company Limited, and a fund under BOC Hong Kong (Holdings).

International investors include sovereign wealth funds Qatar Holding, Singapore’s Temasek Holdings, Japan’s Tokio Marine Holdings and Mizuho Bank.

After the completion of the share sale, CITIC Pacific’s public shareholding will satisfy Hong Kong Stock Exchanges’ minimum requirement of 15%.

CITIC Pacific says it is in the process to raise the remaining HK$22.6 billion for the cash portion of the acquisition of its parent. It will consider using its own internal cash, bank borrowings or other means to raise the money if necessary.

Caishen.Co - Primary Data for China Secondary Investment and Stock Markets
Sophy Yang
Sophy Yang maintains our exclusive DealShot service. Culled from thousands of online data points, our China Money AI gathers data, and then Sophy fills in the "last mile" to make sure the data is accurate for our clients who rely on this critical deal flow data.