China Investment Corporation (CIC) has agreed to acquire a 40% stake in CITIC Capital Holdings.
Shearman & Sterling advised CIC, a sovereign wealth fund that manages the foreign exchange reserves of the People's Republic of China. Linklaters acted for the fund as Hong Kong counsel, while Baker & McKenzie advised CITIC Capital and Richards Butler represented CITIC Group.
The transaction is subject to the approval of the Hong Kong Securities and Futures Commission. It is expected to close in the fourth quarter of 2009.
CIC was established in September 2007 with US$200 billion of assets under management.
CITIC Capital, a China-focused investment management and advisory firm, manages $2 billion through a variety of alternative-investment platforms.