KKR nets $195m through partial exit from China's CICC

The GP sold approximately 74.2 million shares on November 14 and a further 16.2 million the following day for an average price of HK$16.82 per share, according to a disclosure. Its interest in CICC’s Hong Kong-listed shares – CICC is a joint stock company with domestic shares as well – has fallen to 5.02% from 10.97%. The stock closed at HK$17.52 on November 17, valuing KKR’s remaining interest at HK$1.34 billion ($171.5 million).

Morgan Stanley formed CICC as a joint venture with China Construction Bank (CCB) in 1995 and offloaded its 34.3% stake to TPG Capital, KKR, GIC Private and Great Eastern Life in 2010. TPG paid $300.3 million for 10.3%, KKR paid $291.5 million for 10%, GIC paid $262.4 million for 9% and Great Eastern paid $144.3 million for 5%. China Investment Corporation, which had earlier assumed control of the business from CCB, remained the majority owner.

They converted their holdings into H-shares in 2015 and CICC raised HK$6.3 billion ($811 million) in its Hong Kong IPO in 2015. None of the investors who acquired Morgan Stanley’s position sold any shares in the offering.

KKR’s partial exit comes just over a month after Great Eastern offloaded its entire position in CICC for HK$1.31 billion. TPG held an 11.3% stake as of September but is no longer listed as a substantial shareholder – with an interest of more than 5% - although none of the disclosed transactions since then appear to relate to the PE firm. GIC still owns 14.36% of CICC’s H-shares.

CICC’s operations cover investment banking, equities and fixed income brokerage services, wealth management, and investment management, including private equity investment. It posted RMB8.94 billion ($1.35 billion) in revenue for 2016, down from RMB9.51 billion the previous year, while net income dropped to RMB1.82 billion from RMB1.95 billion over the same period. Total assets stood at RMB101.9 billion, up from RMB94.1 billion.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Open market
• Financials
• China
• CICC
• Exit
• KKR
• Financial Services