Carlyle Group Exits China Pacific Insurance; Total Return Around $5.2 Billion

--Carlyle Group is selling remaining shares in China Pacific Insurance, term sheet says

--Sale expected to bring Carlyle's total return on investment to around $5.2 billion

(Adds details and background of Carlyle's investment in China Pacific)

 
   By Fiona Law 
 

HONG KONG--The U.S. private equity firm Carlyle Group LP is selling its remaining shares in China Pacific Insurance (Group) Co. (2601.HK) for around US$792 million, bringing its lucrative investment in the Chinese insurer to an end.

The latest share sale would bring Carlyle Group's total return on its investment in China Pacific to around US$5.2 billion. Carlyle had invested a total of $740 million in China Pacific in 2005 and 2007, but Carlyle co-founder Bill Conway in 2011 put the total investment at $900 million.

Carlyle has conducted at least six share sales since China Pacific held its initial public offering in 2009.

In the latest round, Carlyle is selling around 203 million shares, or 7.3% of China Pacific's Hong Kong-listed shares, for HK$30.0-HK$30.3 a share, according to a term sheet seen by The Wall Street Journal on Monday.

The range represents a discount of 2.3%-3.2% from China Pacific's closing price of HK$31.0 Monday, it said.

Goldman Sachs and UBS are handling the placement, the term sheet said.

Carlyle last sold US$723 million of China Pacific shares in a placement in July, slashing its holdings of the insurer's Hong Kong-listed shares to 8.81% from 18.38%.

China Pacific is also listed in mainland China.

Write to Fiona Law at [e-mail]

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