Citic Securities seeks $804m from asset sale

Updated: 2011-08-15 13:11


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Citic Securities Co said Friday it plans to raise 5.14 billion yuan ($803.7 million) by selling a 31 percent stake in its China Asset Management Co unit to three parties.

South Industry Assets Management Co will pay 1.76 billion yuan for 11 percent of China Asset Management. Shandong Province Rural Economic Development Investment Company, an investment arm backed by the Shandong provincial government, will acquire a 10 percent stake for 1.60 billion yuan, while Power Corp of Canada will get another 10 percent for 1.78 billion yuan, the nation's largest securities company by assets said in a statement filed to the Shanghai Stock Exchange.

The deals are subject to China Securities Regulatory Commission approval, the company said in the statement.

Altogether, Citic Securities aims to raise 8.16 billion yuan by disposing of 51 percent China Asset Management in five stages.

The brokerage has been seeking to reduce its stake in China's largest fund management company to 49 percent over the past year to meet regulatory requirements and pave the way for its listing in Hong Kong.