CITIC Securities buys back stake in China AMC
28 May 2013
By Hui Ching-hoo
CITIC Securities has repurchased a 10% stake in China Asset Management Corp (China AMC) from the asset manager’s majority shareholder Wuxi Guolian Development (Group) for 1.6 billion RMB (US$253 million).
CITIC Securities says the company will own a 59% stake in China AMC upon the completion of the transaction, noting that the Mainland fund industry will benefit from the initiatives given the potential for business innovation. Given this and the resurgence of the secondary market, the increased holding in China AMC should optimise the firm’s income structure and improve its profitability.
This transaction comes 18 months after Wuxi Guolian Development purchased the stake from CITIC for 1.6 billion RMB in late 2011. In early May, Wuxi Guolian Development put the stake up for sale on the Wuxi Assets and Equity Exchange with an offer price of 1.6 billion RMB.
CITIC Securities is the only entity to tender a bid for the stake.
China AMC is the largest asset manager in China with total AUM of 261 billion RMB. The firm realised revenue of 2.42 billion RMB last year.
Separately, China AMC announced on Saturday (May 25) that the firm’s deputy general manager Liu Wendong has resigned, effective from May 23.
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