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China Life, CITIC Securities start win-win cooperation |
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Written by Administrator
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Wednesday, 28 June 2006 |
BEIJING, June 28 (InfoChina) – China Life Insurance Co., Ltd. (NYSE: LFC, HK: 2628) and its parent company China Life Insurance Group have spent 4.645 billion yuan to acquire 500 million common shares of CITIC Securities (SH: 600030), one of China’s well-known securities brokerage, at a price of 9.29 yuan per share, on June 27.
The group company subscribed 150 million shares and the listed company subscribed 350 million shares. With the 13.28 million negotiable shares of CITIC already at hand, the two companies have snatched a share of 17.22% and became the second largest shareholder of CITIC Securities.
Earlier news disclosed that CITIC Securities planned to make a directional right issue of 500 million shares to institutional investors and China Life would subscribe 300 million shares. The higher-than-expected share subscription by China Life is believed to be a positive for the insurance company’s business diversification.
Another two Hong Kong-listed insurers, Ping An Insurance (HK: 2318) and PICC Property & Casualty Insurance (HK: 2328), also expressed their interests in securities industry.
After the rights issue, CITIC Securities’ net asset will top 10 billion yuan, the biggest among China’s listed securities broker. |
China Stock News