Carlyle raises $738m in latest China Pacific sell-down
The Carlyle Group has sold $723 million of shares in China Pacific Insurance (CPIC) through a block trade, marking the private equity firm's fifth partial exit from the company since December 2010. Total returns are in excess of $4 billion, putting Carlyle on course for its biggest ever cash exit globally.
According to Bloomberg, Carlyle Holdings Mauritius and Parallel Investors Holdings - both funds controlled by Carlyle - have sold 220 million shares in CPIC for HK$25.5 to HK$26 each, representing a 5.2% discount to the stock's closing price in Hong Kong on Friday.
The news comes after the Chinese insurer announced a profit warning last week that its first-half net income may drop by 55% from a year ago, largely due to the significant decline in investment yield as compared to the corresponding period last year and the slowdown in the business growth in the first half of 2012.
Carlyle bought its stake in the insurer in two tranches, in 2005 and 2007, for a total of $740 million. It exited part of its holding in December 2010 for $860 million through a private placement and sold 415 million shares for $1.78 billion in January 2011. Last July, Carlyle offered another 250 million shares in CPIC at HK$30.90-31.40. Then, the firm sold 18 million shares for about $57 million in January this year.
Prior to the latest transaction on Friday, Carlyle owned 18.38% in the Chinese insurer, according to the Hong Kong Stock Exchange. The company also trades on the Shanghai bourse.
The Hong Kong-listed shares of CPIC dropped 7% during Monday's morning trading.
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