Carlyle Group Raises US$796 Million in China Pacific Sale - Source

By Prudence Ho

HONG KONG--U.S. private equity firm Carlyle Group LP has raised US$796 million by selling its remaining stake in China Pacific Insurance (Group) Co. (2601.HK), a person familiar with the matter said Tuesday, marking the end of a lucrative investment in the Chinese insurer.

The private equity firm sold 203 million shares, or nearly 9% of the insurer, at HK$30.30 each, the high end of an indicative price range of HK$30.00-HK$30.30, the person said. The sale price was a 2.3% discount to China Pacific's closing price of HK$31.00 Monday.

The latest share sale brings total proceeds from Carlyle's China Pacific investment to around US$5.2 billion.

Carlyle had invested a total of US$740 million in China Pacific in 2005 and 2007.

The U.S. firm has conducted at least five share sales since China Pacific held its initial public offering in 2009. 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.

Goldman Sachs and UBS handled the sale.

Write to Prudence Ho at [e-mail]

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