Morgan Stanley to sell stake in CICC

17:05, March 05, 2010      

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China International Capital Corporation (CICC) chairman Li Jiange told reporters March 3 that Morgan Stanley has signed a deal to sell its 34.3 percent stake in CICC. Li refused to disclose detailed information of the deal and potential buyers.

Li stated March 4 that Morgan Stanley is now waiting for regulatory approval.

Morgan Stanley has been exploring the sale of its 34.3 percent stake in CICC since 2008. It is said that the potential buyers are two American private-equity firms - Kohlberg Kravis Roberts & Co (KKR) and TPG Capital.

It is reported that the 2 firms will pay more than 1 billion U.S. dollars for the stake and they will evenly split the 34.3 percent stake currently owned by Morgan Stanley.

Established in 1995, CICC is a joint venture among Morgan Stanley, China Construction Bank and China National Investment and Guaranty Corporation. At the initial stage, Morgan Stanley invested 37 million U.S. dollars into CICC. If the current price of the investment is 1 billion U.S. dollars, the rate of return for Morgan Stanley will reach 26 times of their original investment.

The shareholder structure of CICC is as follows:
China Construction Bank: 43.35 percent
Morgan Stanley Bank International: 34.3 percent
China National Investment and Guaranty Corporation: 7.65 percent
Government of Singapore Investment Corporation: 7.35 percent
Mingly Corporation: 7.35 percent

By People's Daily Online
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