China Huarong Gets $6.6 Billion Equity Injection in Bailout
- Citic to take 23.5% stake in Huarong as second largest owner
- Huarong to sell stakes in Xiangjiang Bank, leasing unit
The China Huarong Asset Management Co. headquarters in Beijing.
Photographer: Yan Cong/BloombergThis article is for subscribers only.
China Huarong Asset Management Co. plans to raise as much as 42 billion yuan ($6.6 billion) by selling shares to a group of state-backed investors and said it will divest more assets as it unveiled long-waited details on a rescue package to keep the troubled bad-debt manager afloat.
The Beijing-based firm will sell no more than 41.2 billion shares to investors led by Citic Group at 1.02 yuan apiece, a 23% premium to the last closing price before the suspension of trading, according to a Hong Kong Stock Exchange filing late Wednesday. Upon completion, Citic will hold 23.46% of Huarong, while the Ministry of Finance’s stake will fall to 28% from 57%.