Morgan Stanley is planning to sell its 34% stake in China International Capital Corp (CICC), reported Reuters quoting Wei Sun Christianson, the US bank’s chief executive in China.
As Morgan Stanley already has one joint venture in China, regulators will not approve another one. As a result, the bank feels that its role in CICC has been reduced to that of a passive investor and intends to dispose its stake.
Reportedly, this is the second attempt by Morgan Stanley to part with its stake in CICC after negotiations with buyout firms fell apart early last year on disagreements over valuation.
The sale is expected to fetch approximately $1.2 billion to the US bank. Bain Capital and General Atlantic, US-based private equity firms, are among those eyeing the stake in the China-based investment bank, reported the news agency.
