Citic Pacific Ltd. (267), which is acquiring $36 billion of assets from its state-owned Chinese parent, said it will add new investors including Tencent Holdings Ltd. (700) as it raises funds for the deal.
The company, which agreed last month to sell $5.1 billion of shares, will offer an additional $690 million of stock to ten investors, according to a Hong Kong exchange filing yesterday. Tencent, Asia’s largest Internet company, and Och-Ziff Capital Management Group are each purchasing $50 million of stock at HK$13.48 a share, according to the statement.
Citic Pacific said in April it could issue as many as 4.68 billion new shares to raise funds and restore its public float. The company will be renamed Citic Ltd. after buying assets from its parent, China’s first state-owned investment company, including financial services, energy and property.
The transaction comes as Chinese President Xi Jinping advocates the most sweeping changes since Deng Xiaoping’s liberalization in 1978, including loosening yuan trading and allowing more private investments in state businesses. The deal, which is the biggest asset injection into a Hong Kong-listed unit from China, may become a model for similar moves by government-controlled companies.
Kuok Brothers Sdn. and Kuok (Singapore) Ltd., controlled by the family of Malaysian billionaire Robert Kuok, will buy a combined $200 million of stock, according to yesterday’s filing. Chow Tai Fook Nominee Ltd., controlled by Hong Kong billionaire Cheng Yu-tung’s family, agreed to invest $50 million in the offering, the filing shows.
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