China CITIC Bank has acquired a 70.32% interest in CITIC International Financial Holdings (CIFH), an investment holding company of Hong Kong-based CITIC Ka Wah Bank, for US$1.7 billion.
Citic Bank entered into the share purchase agreement with Chinese financial conglomerate CITIC Group and Gloryshare Investments on May 8. The cash deal still requires shareholder approval.
Beijing-based partner Chris Wong led the Freshfields Bruckhaus Deringer team advising the purchaser Citic Bank, which now plans to expand its branch network to other international finance centres. Hong Kong-based partner Denise Jong (pictured) led the Richards Butler / Reed Smith team acting for CITIC Group.
CIFH was previously listed on the main board of the Hong Kong Stock Exchange and went private in 2008. The remaining 29.68% of the company belongs to Spain’s second-largest bank BBVA.