<article><a href="http://www.cpthailand.com/" target="_blank">Charoen Phokphand Group (CP)</a> and <a href="http://www.itochu.co.jp/en/" target="_blank">ITOCHU Corporation</a> (ITOCHU), two leading conglomerates in Asia, agreed to invest in China’s largest conglomerate <a href="http://www.citic.com/" target="_blank">CITIC Limited</a> through a 50:50 joint investment vehicle, Chia Tai Bright Investment Company Limited (CT Bright).</article>

<a href="http://www.cpthailand.com/" target="_blank">Charoen Phokphand Group (CP)</a> and <a href="http://www.itochu.co.jp/en/" target="_blank">ITOCHU Corporation</a> (ITOCHU), two leading conglomerates in Asia, agreed to invest in China’s largest conglomerate <a href="http://www.citic.com/" target="_blank">CITIC Limited</a> through a 50:50 joint investment vehicle, Chia Tai Bright Investment Company Limited (CT Bright).
The company’s statement cited that this proposed strategic investment comprises two transactions with a combined value of HK$80 billion ($10.4 billion).
For the first transaction, CT Bright will buy 2,490,332,363 shares, equivalent to 10 per cent of total shares in CITIC Limited. The proceeds is approximately HK$34.4 billion ($4.54 billion). These shares are currently held by CITIC Group Corporation, a PRC government-owned entity which currently owns around 78 per cent of CITIC.
Then, CITIC Limited will issue 3,327,721,000 convertible preferred shares to CT Bright as the second transaction, the proceeds of which will be around HK$5.9 billion ($5.9 billion) and paid to CITIC Limited in cash.
For both transactions, the agreed price per share is set at HK$13.80.
Upon the completion of the two transactions, CT Bright will hold around 20 per cent of shares of CITIC Limited and CITIC Group will remain as the controlling shareholder. CT Bright shall have the right to nominate one non-executive director and one independent non-executive director to the board of CITIC Limited.
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“We are pleased to welcome CP and ITOCHU as shareholders. Not only have we brought in private investors, but they are attractive global conglomerates who will extend our reach and complement our infrastructure and knowledge,” said CITIC’s chairman Chang Zhenming.
Hong Kong-listed CITIC Limited will use the proceeds to further develop its businesses and invest in emerging opportunities in sectors matching to China’s development. Meanwhile, this significant strategic investment will enable CP and ITOCHU to gain a valuable opportunity to participate in China’s growth.
“We believe that greater collaboration with CITIC and ITOCHU will broaden our opportunities in agriculture, industry, retail, financial services and international trade, and pave the way for our future development by leveraging the respective expertise of each party. This partnership will help to stimulate trade and promote investment in Thailand, and across the region. It will also help to create better connectivity between Asia’s economies,” said CP Group’s chairman Dhanin Chearavanont.
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CP Group and ITOCHU Corp agreed to invest in CITIC Limited through a 50:50 joint investment vehicle, Chia Tai Bright Investment Company Limited (CT Bright).

CP, ITOCHU co-invest $10.4b in CITIC

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CP, ITOCHU co-invest $10.4b in CITIC

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