Tencent Holdings, the Chinese internet giant that owns WeChat, has agreed to acquire a stake of around 5% in local investment bank China International Capital (CICC) for HKD2.9bn ($371.4m).
CICC, set up in 1995, was a joint venture between Morgan Stanley and China Construction Bank. The firm was the first joint venture investment bank in China.
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Under the arrangement, Tencent will subscribe for around 207.5 million new CICC H Shares, representing 12.01% and 4.95% of the total issued H shares and the total issued shares of CICC.
The pair also inked an agreement for cooperation in the area of financial services. At the same time, they agreed to establish a steering committee that will be jointly chaired by their senior management.
Tencent president Martin Lau said: “Tencent looks forward to cooperating with CICC, a leading investment bank in China, in a range of services and products, including providing CICC with our advanced FinTech, and leveraging CICC’s wealth management capabilities to better serve our users.”
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By GlobalDataCICC CEO Bi Mingjian said: “The cooperation is expected to enable CICC to better leverage FinTech to accelerate the transformation of our wealth management platform and provide more differentiated financial solutions to our clients.”
