China s biggest bad debt management firm China Huarong Asset Management Company Limited informed that they have received the approval from the authorities to sell its 20.98 percent of share to a group of eight investors in around $2.4 billion or 14.5 billion yuan recently.
According to the sources the reason behind adding new chares is the plan of the initial public offering (IPO) and to rise its funds Huarong have decided to sell its stake.
It was learnt that the eight groups includes China Life Insurance, Warburg Pincus the US private equity firm, CITIC Securities International Company Limited, Goldman Sachs, Malaysian firm Khazanah Nasional Bhd, Fosun International, COFCO Corporation and International Capital Corporation.
According to the chairman of the Huarong Lai Xiaomin the latest deal will bring corporate governance along with the improvement of its operation of the company.
According to the firm it will also go for partnerships with its investors on the areas like investment and financing, financial leasing, investment banking and asset management. Huarong started its journey back in 1999, 25 years back and has a great reputation in China.
After the rise of non -performing loans in China after the slow economy where the firms like Huarong gets the benefit by managing the bad debts.
Huarong s profit jumped to 44 percent last year after doing great business earned 10.1 billion yuan while the total asset of the company is worth $65.7 billion which is under management while the deal has been signed at the headquarters of Huaring in Beijing on August 28.