Morgan Stanley Said to Sell Stake to Singapore's SWF and Others

Morgan Stanley is selling its 34.3% stake in China International Capital Corp. to Kohlberg Kravis Roberts & Co., TPG Capital, Singapore’s Great Eastern Holdings Ltd. and the nation’s sovereign-wealth fund.

(December 2, 2010) — Morgan Stanley has received Chinese government approval to sell its 34.4% stake in China International Capital Corp. to sovereign wealth fund Government of Singapore Investment Corp., one of the country’s top investment banks, as well as Kohlberg Kravis Roberts, TPG Capital and Singapore-based insurer Great Eastern Holdings, Bloomberg is reporting.

After the transaction, GIC will reportedly become the second-largest shareholder. Previously, when the company had just been set up, GIC held 7.35%.

Morgan Stanley will sell stakes of approximately 10% each to TPG and KKR, about a 5% stake to Great Eastern. The remaining stake will be sold to Government of Singapore Investment Corp., with the entire stake valued around $1 billion, according to the news service.

Morgan Stanley, which previously invested $35 million with the CICC when it was established in 1995, ceded management control in 2000. The firm has been trying to sell its stake in China International Capital Corp for several years now. According to Bloomberg, the sale will end Morgan Stanley’s 15-year relationship with the CICC, the first Sino-foreign investment bank and the top-ranked underwriter of share sales in the country.

To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href=''></a>; 646-308-2742