Morgan Stanley (MS.NYSE) has been approved to sell its 34.9% stake in leading mainland investment bank China International Capital Corp (CICC) to private equity investors including KKR (KKR.NYSE) and TPG Capital, Bloomberg reported. Morgan Stanley will realize a pretax gain of US$700 million and be cleared to move ahead with a joint venture with China Fortune Securities. Also joining in taking the stake off of Morgan Stanley’s hands are the Government of Singapore Investment Corp (GIC) and Greater Eastern Life Assurance. GIC is doubling its existing share in CICC to 16.35%, becoming CICC’s second-largest shareholder. Morgan Stanley has been trying to offload its holdings in CICC, which it jointly established with China Construction Bank (601939.SH, 0939.HK) and other financial institutions, since 2007. It originally purchased its share for US$37 million.
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