China Huarong Asset Management buys 5% stake in CITIC Ltd

(Reuters) -China Huarong Asset Management said on Wednesday it has agreed to buy a nearly 5% stake in CITIC Ltd from CITIC Polaris for HK$13.63 billion ($1.75 billion).

The purchase price of HK$9.35 per share represents a 29.3% premium to CITIC’s last closing price of HK$7.23.

The company, one of four major state-owned distressed debt managers, said it expects to fund the acquisition through the group’s own funds.

CITIC Polaris is an unlisted unit of the larger CITIC Group Corp.

($1 = 7.8067 Hong Kong dollars)

(Reporting by Archishma Iyer in Bengaluru)