State-owned bad debt manager China Huarong has agreed to buy a stake in investment bank Citic.
China Huarong Asset Management has agreed to buy a nearly 5 percent stake in Chinese investment banking giant Citic for HK$13.6 billion ($1.7 billion), according to a statement.
This marks a 29 percent premium to Citic’s last closing price of HK$7.23 and the bad debt manager will fund the acquisition through its own funds. The stake will be bought from Citic Polaris, an unlisted unit of Citic Group.
