US financial services giant Morgan Stanley looks set to take almost full control of its two Chinese mainland joint ventures after a Chinese partner announced the stakes had been put up for sale, reported Caixin.
State-owned brokerage China Fortune Securities, which holds 49% of brokerage Morgan Stanley Huaxin Securities, is selling a 39% stake at a price of RMB 569.6 million ($88.1 million). It is also sellingits 36% stake in Morgan Stanley Huaxin Fund Management, a mutual fund manager, for RMB 389.3 million.
Morgan Stanley is already the largest shareholder in both companies and has first right of refusal to buy the stakes. If it does go through with the purchases and they are approved by the regulators, Morgan Stanley will own 90% of Morgan Stanley Huaxin Securities and 85% of Morgan Stanley Huaxin Fund Management.