China Investment Corp (CIC), the country's sovereign wealth fund, has agreed to buy $400 million worth of shares from China Longyuan Power Group's $2.2 billion Hong Kong initial public offering, a source close to the deal said on Tuesday.
CIC [CIC.UL] will become the fifth cornerstone investor in Longyuan, Asia's largest wind power generator and the world's No.5, said the source, who declined to be identified as he was not authorised to speak to the media. CIC declined to comment.
Longyuan has already landed four cornerstone investors for a combined $330 million worth of shares, including U.S. billionaire investor Wilbur Ross, according to a preliminary IPO prospectus.
Ross plans to buy $100 million worth of Longyuan's shares, Reuters reported on Monday. China Life Insurance Group, Value Partners Ltd and Bank of East Asia's Chairman David Li Kwok-po plan to subscribe to $180 million, $30 million and $20 million worth of shares, respectively. [ID:nSEO123043]
Last week, CIC agreed to buy HK$5.5 billion ($710 million) worth of shares in Chinese polysilicon producer GCL-Poly Energy.
This year CIC more aggressively sought deals in the energy and commodities sectors after racking up big paper losses on investments in troubled U.S. financial institutions in 2008.
Longyuan is selling 2.1 billion shares, or 30 percent of its enlarged share capital, at a price range indicated between HK$6.26 and HK$8.16 per share.
(Editing by George Chen and Jonathan Hopfner)