China

China International Capital Corp to Introduce Tencent as A Strategic Investor

Summary:

  • China International Capital Corp Ltd (3908.HK) recently announced plans to introduce Tencent Holdings (0700.HK) as a strategic investor, as reported by Tencent Tech.
  • Tencent will acquire all of CICC’s 207.5 million newly-issued H-shares, which equates to 13.65% of the company’s H-shares, or 5.21% of CICC’s issued share capital.
  • The acquisition price will be HK$ 13.8 per share and the total transaction amount will be HK$ 2.86 billion(US$ 366 million).

Why It Matters:

  • Founded in 1995, CICC is principally engaged in investment banking, equity sales and trading, fixed income, commodities and currencies (FICC), and wealth management and investment management. State-owned Central Huijin Investment Company Limited is CICC’s largest shareholder.
  • Tencent is a leading Chinese technology firm and has been playing a leading role in the “Internet Finance” sector in recent years. As part of the strategic investment agreement, Tencent will provide financial technology support to CICC, including precise marketing and big data analysis services.