Carlyle Selling Remaining China Pacific Stake, Terms Show

Carlyle Group LP (CG) is seeking to raise about $793 million from the sale of its remaining stake in China Pacific Insurance Group Co., according to a term sheet obtained by Bloomberg News.

The Washington-based private equity firm is offering 203 million China Pacific shares at HK$30 to HK$30.30 apiece, the terms show. China Pacific ended trading at HK$31 yesterday, after rising about 20 percent in the past month amid a surge in Chinese stock prices. 

Carlyle and Newark, New Jersey-based Prudential Financial Inc. (PRU) agreed in December 2005 to take a 25 percent stake in China Pacific Life Insurance Co., a unit of Pacific Insurance, for 3.3 billion yuan (then $409 million). The investment was converted into a stake in the parent company in 2007, and then into Pacific Insurance’s Hong Kong-listed shares in 2009 as the insurer sold stock in the city.

Carlyle sold China Pacific shares since December 2010, after a lockup period on its holding expired. The fund sold 221 million shares in July, according to stock exchange filings.

China’s benchmark CSI 300 Index has gained 20 percent since early December, after signs of an economic recovery in the world’s second-largest economy.

To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net

To contact the editors responsible for this story: Andreea Papuc at apapuc1@bloomberg.net; Joshua Fellman at jfellman@bloomberg.net

source: http://www.bloomberg.com/news/2013-01-07/carlyle-selling-remaining-china-pacific-stake-terms-show.html?cmpid=yhoo