China Huarong Asset Management buys 5% stake in Citic

CHINA Huarong Asset Management said on Wednesday (Nov 15) it has agreed to buy a nearly 5 per cent stake in Citic from Citic Polaris for HK$13.63 billion (S$2.4 billion).

The purchase price of HK$9.35 per share represents a 29.3 per cent premium to Citic’s last closing price of HK$7.23.

The company, one of four major state-owned distressed debt managers, said it expects to fund the acquisition through the group’s own funds.

Citic Polaris is an unlisted unit of the larger Citic Group. REUTERS