Bloomberg News

Huarong Said to Agree to Sell Stake to Warburg Pincus, Khazanah

July 22, 2014

China Huarong Asset Management Co., the nation’s largest bad-loan manager, agreed to sell a 20 percent stake for about $2 billion to a group of investors including Warburg Pincus LLC and Malaysian sovereign fund Khazanah Nasional Bhd., people familiar with the matter said.

Other investors include Goldman Sachs Group Inc. (GS:US) and China’s Fosun Group, China International Capital Corp. and units of Citic Group Corp. and Cofco Corp., the people said, asking not to be identified because the information is private.

Huarong shareholders approved an issue of new shares to the investors today after China’s Ministry of Finance cleared the sale, one of the people said. Huarong aims to announce the deal in mid-August after receiving approval from the China Banking Regulatory Commission, the person said.

The company, which was set up to oversee non-performing loans mostly from Industrial & Commercial Bank of China Ltd., is selling a stake ahead of a planned initial public offering next year. Huarong said yesterday it booked first-half profit of 11.8 billion yuan ($1.9 billion) before provisions.

Spokesmen for Huarong and the investors declined to comment or couldn’t immediately be reached for comment. Reuters reported earlier today that Huarong is nearing an agreement to sell a stake to the investors, citing unidentified people.

To contact the reporter on this story: Jonathan Browning in Hong Kong at jbrowning9@bloomberg.net

To contact the editors responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net Ben Scent, Greg Ahlstrand


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