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Mergers & Acquisitions
China

China’s Huarong Asset Management buys 36pc stake in CEFC China unit

Stock market filing suggests deal, made through Huarong Ruitong Equity Investment Management, worth about US$1.5 billion

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People visit the China Huarong Asset Management stand at a finance expo in Beijing in this file image. The company recently bought a 36.2 per cent stake in a unit of CEFC China Energy. Photo: Reuters
Reuters

State-controlled China Huarong Asset Management Co has bought a 36.2 per cent stake in the unit of CEFC China Energy through which CEFC is buying a US$9.1 billion stake in Russia’s Rosneft, according to a stock market filing.

Huarong acquired the stake in CEFC Hainan International in two tranches, in December and February, according to the February 13 filing by CEFC Hainan on an online portal run by the State Administration for Industry & Commerce (SAIC).

CEFC subsidiary CEFC Shanghai International Group Co owns the remaining 63.8 per cent stake.

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Huarong made the purchase through its unit, Huarong Ruitong Equity Investment Management Co.

It was not immediately clear how much it paid for the stake, but the filing showed CEFC Hainan’s registered capital expanded by 9.6 billion yuan (US$1.52 billion) as a result of the fund injection.

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Huarong Ruitong and CEFC did not immediately comment.

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