KKR & Co and BlackRock are in talks to acquire a pre-IPO stake in China Huarong Asset Management Co, reported Reuters.
China Huarong is reportedly seeking to raise US$2 billion through a 15% to 20% stake ahead of the non-performing loan (NPL) manager’s IPO.
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Additionally, a group of around 20 investors are planning to submit first-round offers by mid-February for a minority stake in China Huarong Asset Management.
Other investors in the hunt include Blackstone Group and Bain Capital as well as several sovereign wealth funds from Asia and the Middle East.
The company said that it plans to focus on attracting strategic partners in 2014 as well as preparing to list domestically and overseas.
Through this planned stock offering Huarong will raise money to expand its business by acquiring bad loans and forfeited assets from companies unable to repay their lenders.
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By GlobalDataHuarong’s fund-raising plans come in the wake of China Cinda Asset Management Co US$2.9 billion Hong Kong IPO in December.
China Huarong, with assets of RMB400.9 billion ($66 billion), has reported a net profit of RMB10.07 billion in 2013, up 44.7% year-on-year, as its purchases of distressed assets rose dramatically.
