Citic to shift assets to HK in $36bn deal

Hong Kong-listed Citic Pacific to buy Citic Ltd from its parent Citic Group for $36 billion, as China drives through reform of its state-owned enterprises.

Red chip Citic Pacific has agreed to buy Citic Ltd for Rmb227 billion $36 billion from its state-owned parent Citic Group in a complex deal that promises to make a new behemoth in Hong Kong's stock market.

Citic Pacific a Hong Kong-listed, China-focused company specialising in iron ore mining, property development, and specialty steels will fund the acquisition of highly diversified Citic Ltd with cash and via a massive Rmb177 billion $28.4 billion new share issue to Citic Group.

These shares to Citic Group will be priced at HK$13.48 per share, representing a 25.8% premium to the 60-day average closing price of Citic...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222