Jul. 19, 2011 (China Knowledge) - CITIC Pacific Ltd<0267
> on Jul. 15 said it plans to sell stakes in a Chinese cable television company to its parent CITIC Group, China's biggest state-owned investment conglomerate, for RMB 3.51 billion.
CITIC Pacific said in a statement that it will sell 50% stake in Citic Guoan Co to CITIC Group, which will become the sole owner of the target firm after the deal, to focus on the investment of special steel, iron ore mining and real estate. Total assets of the three businesses accounted for 72% of CITIC Pacific's total assets as of Dec. 31, 2010.
Citic Guoan's major assets are 41.4% equity interests of Shenzhen-listed
Citic Guoan Information Co<000839
>, which operates cable television projects in seven Chinese provinces.
CITIC Pacific expects to earn HK$2.35 billion in profit via the sales of the cable television assets.
In addition, CITIC Pacific said it will delay iron exports from an iron ore project, located in Pilbara, Australia, to the first half of 2012 from the end of this year, adding that the company has mining right of 2 billion metric tons of iron ore in the project.