Citic sold an 11% stake to China South Industrial Group’s South Industry Assets Management for RMB1.76 billion. Another 10% stake was sold to Shandong Rural Economic Development Investment Corporation for RMB1.6 billion, and the remaining 10% was sold to Power Corporation of Canada for CNY1.784 billion.
Brokerage firm Citic Securities, which originally owned 100% of CAM, has been mandated to divest 51% of its stake to comply with regulatory requirements which cap the maximum stake in a Chinese fund management firm that can be held by a single shareholder at 49%.
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According to the Beijing Financial Asset Exchange, the buyers of the remaining two 10% stakes have not been finalized.
US fund house T Rowe Price was also rumored to be in talks to buy a stake in CAM.
In a statement, Power Corp’s chairman Paul Desmarais Jr said that, this investment represents a unique opportunity for his company to participate in an industry?leading fund manager in one of the world’s largest economies, where there is growing demand for financial services.
Established in 1998, China AMC is recognized as the leading company in the Chinese asset management sector, with approximately US$35 billion in assets under management at 31 December 2010.
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