Wuxi Guolian Development to sell 10% stake in China AMC
09 May 2013
Category: News, China
By Hui Ching-hoo
China Asset Management Corp’s (China AMC’s) majority shareholder Wuxi Guolian Development (Group) is putting a 10% stake in the firm, the Mainland’s largest asset manager, up for sale on the Wuxi Assets and Equity Exchange.
The move comes around 18 months after Wuxi Guolian Development purchased the shares from CITIC Securities for 1.6 billion RMB (US$253 million) in late 2011.
The shares will be listed for sale between April 23 and May 21, with an offer price of 1.6 billion RMB, roughly a 7.5% premium over the stake’s net asset value of 1.48 billion RMB.
Although Wuxi Guolian offered no rationale as to why it is offloading the shares, the sale comes as China AMC’s displays further annual net profit declines.
First Financial Daily cited market sources as saying that CITIC Securities is likely to be the frontrunner in purchasing the shares. It is currently the largest shareholder of China AMC with a 49% stake.
Wuxi Guolian is a financial, technology and trading conglomerate under the state-owned Assets Supervision and Administration Commission of Wuxi municipal government with registered capital of 8 billion RMB.