SHANGHAI :
Tencent Becomes Strategic Investor in Joint-Venture Investment Bank CICC
Liao Shumin
DATE:  Sep 21 2017
/ SOURCE:  Yicai
Tencent Becomes Strategic Investor in Joint-Venture Investment Bank CICC Tencent Becomes Strategic Investor in Joint-Venture Investment Bank CICC

(Yicai Global) Sept. 21 -- China's first joint venture investment bank, China International Capital Corp. (CICC) [HKG:3908] has brought in internet giant Tencent Holdings Ltd. [HKG:0700] as a strategic investor through a stock subscription agreement, the lender said in a press briefing on Sept. 20.

Tencent will subscribe to 207.5 million CICC-issued H-stocks through the agreement, representing 12.01 percent of the firm's H-stock and 4.95 percent of total stock, at an issue price of HKD13.80 (USD1.77).

The issuance is still subject to regulatory approval.

CICC and Tencent have also signed an agreement for broad cooperation in the financial services field and will set up a strategic cooperation committee led by executives from the two parties.

"We are glad to bring in Tencent as a strategic investor," said Bi Mingjian, a CICC executive. "The cooperation will help accelerate CICC in its transition to a wealth management company and provide more diverse financial solutions for our clients."

"We expect to conduct cooperation with CICC on products and services," said Liu Zhiping, an executive at Tencent, "including using advanced financial technology and bringing in wealth management capabilities from CICC to provide better services for users."

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Keywords:   CICC,Strategic Investment,TENCENT