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.
April 16, 2014

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...

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