State-owned conglomerate Citic Croup plans to inject assets into listed subsidiary citic pacific for a listing of its main operating arm in Hong Kong. As of the end of 2013, Citic Limited, Citic Group's main operating arm, had total equity of about Rmb225bn (US$36.3bn). In an announcement last week, Citic Pacific said it would fund the acquisition through cash and new shares. The company will issue an undisclosed number of shares at a price of HK$13.48 each, or a 6.5% premium to the pre-deal spot. According to sources, the financing structure of the deal has not been decided as yet. If Citic Pacific chooses to fund the acquisition through new shares only, it may have to sell US$3bn-$4bn shares in the public market to maintain its free-float.
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