Carlyle cuts stake in China Pacific
By Chen Li |
July 28, 2011, Thursday
|
Print Edition
Print Edition
CHINA Pacific Insurance Group Co tumbled in Hong Kong yesterday as investors scurried to sell after Carlyle Group dropped nearly US$1 billion of the insurer's shares.
China Pacific fell by 5.5 percent, the biggest decline since May 25, 2010, before closing at HK$30.50 (US$3.90) - a 4.5 percent loss.
In Shanghai, the third largest Chinese insurer shed 0.71 percent to 20.91 yuan.
The sell-off came after Washington-based Carlyle said on Tuesday it was offering 250 million of China Pacific's Hong Kong-listed shares at between HK$30.90 to HK$31.40 each, which is a discount of at least 1.7 percent on Tuesday's close.
Citic Bank said yesterday that it maintained its "buy" rating on China Pacific despite Carlyle's sale.
The investment bank forecast that the share price of China Pacific in Hong Kong could rise to HK$39 thanks to its current "attractive valuation" and that the insurer may clock higher growth than its rivals.
Yesterday's sale was the third time since December that Carlyle offloaded the insurer's shares. The company sold 215.8 million of the insurer's Hong Kong shares at HK$31.50 each on December 30 and 415.2 million of the shares in January at HK$33.45 apiece.
Allianz SE, Europe's biggest insurer and US-based Fairholme Capital Management Co bought all the shares Carlyle sold in the previous sales.
After the sale, Carlyle will still have 442 million shares of the Chinese insurer, taking up 19.1 percent of the company's outstanding public shares.
Carlyle pledged not to make another such sale within the next 90 days.
China Pacific fell by 5.5 percent, the biggest decline since May 25, 2010, before closing at HK$30.50 (US$3.90) - a 4.5 percent loss.
In Shanghai, the third largest Chinese insurer shed 0.71 percent to 20.91 yuan.
The sell-off came after Washington-based Carlyle said on Tuesday it was offering 250 million of China Pacific's Hong Kong-listed shares at between HK$30.90 to HK$31.40 each, which is a discount of at least 1.7 percent on Tuesday's close.
Citic Bank said yesterday that it maintained its "buy" rating on China Pacific despite Carlyle's sale.
The investment bank forecast that the share price of China Pacific in Hong Kong could rise to HK$39 thanks to its current "attractive valuation" and that the insurer may clock higher growth than its rivals.
Yesterday's sale was the third time since December that Carlyle offloaded the insurer's shares. The company sold 215.8 million of the insurer's Hong Kong shares at HK$31.50 each on December 30 and 415.2 million of the shares in January at HK$33.45 apiece.
Allianz SE, Europe's biggest insurer and US-based Fairholme Capital Management Co bought all the shares Carlyle sold in the previous sales.
After the sale, Carlyle will still have 442 million shares of the Chinese insurer, taking up 19.1 percent of the company's outstanding public shares.
Carlyle pledged not to make another such sale within the next 90 days.
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