Citic Pacific moves closer to $36.4 billion deal

The company raises HK$39.5 billion ($5.1 billion) to help pay for the deal for Citic Ltd by selling shares to 15 strategic investors.

Citic Pacific has moved closer to completing the purchase of Citic Ltd from its parent Citic Group for Rmb227 billion $36.4 billion after raising HK$39.5 billion $5.1 billion by selling 2.932 billion shares to 15 strategic investors.

Citic Pacific, a Hong Kong-listed company specialising in iron ore mining, property development and specialty steels, planned to fund the acquisition of Citic Ltd with Rmb50 billion in cash and via a massive Rmb177 billion new share issue to Citic Group, according to a company announcement issued in April.

To fund the acquisition, it also planned to raise Rmb50 billion through a new share placement with institutional...

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