CIC to be core investor in wind power generator
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China Investment Corp, the country's sovereign wealth fund, has agreed to buy US$400 million worth of shares from China Longyuan Power Group's US$2.2 billion Hong Kong initial public offering, a source said yesterday.
CIC will become the fifth cornerstone investor in Longyuan, Asia's largest wind power generator and the world's No. 5, said the source. CIC declined to comment.
Longyuan has already landed four cornerstone investors for a combined US$330 million worth of shares, including United States billionaire investor Wilbur Ross, according to a preliminary IPO prospectus.
Ross plans to buy US$100 million worth of Longyuan's shares, it was reported on Monday. China Life Insurance Group, Value Partners Ltd and David Li Kwok-po, Bank of East Asia's chairman, plan to subscribe to US$180 million, US$30 million and US$20 million worth of shares, respectively.
Longyuan is selling 2.1 billion shares, or 30 percent of its enlarged share capital, at between HK$6.26 (81 US cents) and HK$8.16 per share.
