Beijing: US banking giant Morgan Stanley has reached a deal to sell its 34.3% stake in investment bank China International Capital Corp., a report said Thursday, citing CICC’s chairman.
The sale of Morgan Stanley’s entire stake in CICC is still pending regulatory approval in China, bank chairman Li Jiange said, according to Dow Jones Newswires.
Li declined to give further details of the deal.
He made the comments on the sidelines of the annual session of the Chinese People’s Political Consultative Conference, a legislative advisory body.
A CICC spokeswoman was not immediately available to comment on the report.
Last week, a source familiar with the deal told AFP that Morgan Stanley would sell the stake in CICC to US private equity firms Kohlberg Kravis Roberts & Co and TPG Capital for an estimated $1billion.
CICC is a 1995 joint venture between China Construction Bank Corporation and Morgan Stanley, which is expected to exit the venture with a windfall profit as it only paid about $35 million for the stake.
The US banking giant has been eager to pursue a new securities venture in China but securities regulators said it had to first give up its CICC stake, reports have said.
China Investment Corp., China’s sovereign investment fund, invested $5 billion in Morgan Stanley in late 2007.