CITIC International Financial Holdings Limited (CIFH) has made an announcement that the company and CITIC International Assets Management Limited (CIAM), its wholly-owned subsidiary, have entered into a share transfer and subscription agreement with overseas investors.
In accordance with the agreement, these 3 overseas investors will invest HK$ 1,400 million in aggregate in CIAM as an exchange for a combined 60% stake in CIAM’s enlarged share capital.
According to the agreement, Asset Managers Co., Ltd., Ithmaar Bank B.S.C. and Mega Rider Offshore Ltd. will buy CIAM’s existing shares from CIFH and subscribe for new shares in CIAM. When the transaction is completed, the shareholdings by Asset Managers Co., Ithmaar Bank and Mega Rider Offshore in CIAM will be 25%, 20% and 15%, respectively. CIFH intends to remain the sole largest shareholder of CIAM in the foreseeable future.
Established in 2002, CIAM was planned for specialising in distressed asset management, particularly managing and recovering a portfolio of non-performing loans as part of CIFH’s reorganisation in 2002. Also, CIAM has made up a team of seasoned investment professionals having experience in managing direct investment projects in Mainland China. Current portfolio of direct investments of CIAM ranges from consumer products and retail network to real estate and high tech industrial projects.
The shares of a Japan-incorporated Asset Managers Co., Ltd. are listed on the Nippon New Market. Primarily, Asset Managers deals with merchant banking business such as real estate fund.
A Bahrain joint stock company, established and registered in the Kingdom of Bahrain, Ithmaar Bank, the shares of which are listed on the Bahrain Stock Exchange, operates as an investment bank throughout Europe, the Middle East, North Africa and Asia. It is regulated by the Central Bank of Bahrain. Besides holding significant investments in the banking and financial services sectors in different markets, major business activities of Ithmaar Bank include private asset management, advisory business, project financing and equity underwriting business.
A BVI-incorporated Mega Rider Offshore is an investment holding company. Mr. Zhang Shikeng and Madam Zhou Xingchen hold a 50% beneficial interest each. They are business persons with businesses in the PRC and Southeast Asia region.
The total consideration for the shares to be sold account for HK$ 394 million. This amount shall be payable on the completion date of the agreement, currently expected to be December 18, 2006. The total subscription for the new shares is HK$ 1,006 million; this amount shall be payable in cash instalments, the first one due on the Completion Date and the rest within a period of two years following the completion date of the agreement.