Tencent to buy 12% stake in CICC share issue
According to the signed agreement, Tencent will purchase 207.5 million shares of CICC’s newly issued H shares
The China International Capital Corporation announced on Wednesday it has introduced Tencent as a strategic investor, Caixin reported. According to the signed agreement, Tencent will purchase 207.5 million shares of CICC’s newly issued H shares, a 12.1% holding.
That would mean about 4.95% of CICC’s total equity, making Tencent the fourth biggest shareholder in the company. The issuance is awaiting approval from regulators.
The subscription price is HK$13.08 per share, a 10.97% discount of the closing price on Wednesday, for a total market value of HK$2.861 billion. CICC said in an announcement that the fund will be used as a supplement to the company’s capital, in order to support its domestic and overseas business.
After the subscription, Tencent will be authorized to nominate a candidate for company director.
On the same day, the two companies signed a framework agreement for further cooperation in the area of financial service.