China Huarong sells 21% stake to private equity-backed consortium


china 2Chinese debt management group China Huarong Asset Management has agreed to sell a 20.98 per cent stake to a private equity-backed investor consortium.

The stake was valued at RMB14.5bn ($2.4bn), said China Huarong.

It was sold to right investors including Warburg Pincus, CITIC, Goldman Sachs, Fosun International, International Capital Corp, China Life Insurance, COFCO and Khazanah Nasional.

Earlier this year it was reported that buyout firms KKR, Blackstone and Apax Partners also expressed interest in the debt manager.

China Huarong initially planned to sell a stake of between 15 and 20 per cent for over $2bn ahead of a potential IPO.

The group was created by the Chinese government to deal with a build-up of “bad” debt in the country’s banking system.

Copyright © 2014 AltAssets