Date
18 December 2017
CITIC Pacific Ltd. aims to use funds from a share sale to buy assets from its parent company. Photo: Bloomberg
CITIC Pacific Ltd. aims to use funds from a share sale to buy assets from its parent company. Photo: Bloomberg

Tencent, Kuoks, Chow Tai Fook buy into CITIC Pacific share sale

Another 10 investors have signed up for a combined HK$5.35 billion (US$690 million) stake in CITIC Pacific Ltd. (00267.HK) as it raises funds to buy assets from parent company CITIC Group Corp., the Hong Kong Economic Journal reported Wednesday.

Among those putting in money are Mount Emei Investment Ltd., wholly controlled by Tencent Holdings Ltd. (00700.HK); Baylite Co. Ltd., a wholly owned subsidiary of Kuok (Singapore) Ltd.; Trendfield Inc., a wholly owned subsidiary of Kuok Brothers Sdn Berhad; Chow Tai Fook Nominee Ltd., backed by Hong Kong magnate Cheng Yu-tung; and East Crimson Holdings Ltd., controlled by some managing directors of Bain Capital, LLC.

The other investors are Och-Ziff Capital Management Group LLC, China Export & Credit Insurance Corp., Sinochem Hong Kong (Group) Co. Ltd., Oceanwide Real Estate International Co. Ltd. and Youngor (Hong Kong) Industrial Co. Ltd.

The total subscription amounts to 1.59 percent of CITIC Pacific’s enlarged share capital, the report said, citing a stock exchange filing. 

CITIC Pacific also secured US$5.1 billion from 15 other investors last month, the Wall Street Journal reported.

The family of Malaysian tycoon Robert Kuok was the biggest investor in the second round, with the two subsidiaries taking a combined HK$1.55 billion worth of shares, representing 0.46 percent of CITIC Pacific’s enlarged share capital.

Tencent and Chow Tai Fook, each acquired 0.12 percent of the enlarged capital, or HK$388 million worth of shares.

Observers said the diversity of the investors can help improve CITIC Pacific’s governance and financial performance.

The listed company said there is one more investor pending approval but the placements basically mark an end to fundraising.

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