CP Group and Itochu buy $10.4 billion Citic Ltd stake

Deal to buy a 20% stake in the Chinese state-owned enterprise is the country's largest inbound M&A deal on record.

Charoen Pokphand group, headed by Thailand's richest man Dhanin Chearavanont, and Japanese trading firm Itochu have agreed to buy a 20% stake in Citic Ltd for about HK$80 billion $10.4 billion, in a further sign that China's state-owned giants are opening the door to private capital.

The investment would be one of the largest into a Chinese SOE and comes at a time when valuations are undemanding, according to some analysts.

Both Itochu and CP Group already have deep relations with Citic entities and ties to the mainland. In 2011, Itochu invested about $100 million in a Hong Kong asset management arm of Citic Group....

¬ 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