Sovereign Wealth Fund Institute

Caijing reports, “The Government of Singapore Investment Corp will become the second-largest share holder of China Investment Capital Corporation (CICC) after it receives a substantial stake from Morgan Stanley for its exit.  The Government of Singapore Investment Corp (GIC), Singapore’s largest global investment vehicle, will become the second-largest share holder of China Investment Capital Corporation (CICC) after it receives a substantial stake from Morgan Stanley for its exit.

The China Securities Regulatory Commission (CSRC) said in a statement that it had on November 26 approved CICC’s application for the shareholding change that involved a stake of more than 5 percent in the company.  The transfer of shareholding is for Morgan Stanley’s exit from CICC, who plans to sell its stake to four institutions including GIC, a source close to the CSRC confirmed.  Sources close to the deal said the deal could be worth up to more than 1 billion U.S. dollars. Morgan Stanley would sell an 11 percent stake of CICC to Texas Pacific Group (TPG) and Kohlberg Kravis Roberts & Co. (KKR), the two private equity funds and the rest would be transferred to GIC and Great Eastern Life Assurance Co, a wholly-owned subsidiary of Great Eastern Holdings Limited which is controlled by Oversea-Chinese Banking Corporation Limited, according to the same sources.

Under completion of the deal, GIC will become the second-largest shareholder of CICC, from its initial holding of 7.35 percent.

Currently, Central Huijin Investment Ltd holds 43.35 percent of stake, Morgan Stanley with 34.3 percent, China National Investment & Guaranty Co., Ltd with 7.65 percent and GIC, Mingly Corporation with 7.35 percent each, the CICC said on its website.”

Read more: Caijing

According to Reuters, “Singapore’s biggest sovereign wealth fund GIC has chosen UBS, China International Capital Corp (CICC) and Singapore’s DBS as joint bookrunners for its upcoming logistics unit IPO, two sources familiar with the deal said.

The initial public offering is likely to raise $2-$3 billion, much higher than earlier estimated, said the sources who declined to be named because the deal has not been made public yet.

These banks will join JPMorgan and Citigroup, which were first chosen as joint global coordinators, they said.

UBS and DBS declined to comment and CICC was not immediately available for comment. GIC also declined to comment.”

Source: Reuters