Morgan Stanley has received all required regulatory approvals for the sale of its 34.3% stake in China International Capital Corporation (CICC) to TPG Capital, KKR, Government of Singapore Investment and The Great Eastern Life Assurance Company.
Morgan Stanley expects to realize a pre-tax gain of approximately $700m upon consummation of the transaction, which is expected to close before the end of 2010.
Morgan Stanley and China Construction Bank, together with other Chinese and international financial institutions and corporations, established CICC in 1995.
Morgan Stanley president and CEO James Gorman said Morgan Stanley is proud of its history and successful track record in China. This includes Morgan Stanley’s long partnership with CICC, which made Morgan Stanley the first foreign securities firm to have a major stake in a China-based joint venture investment bank.
"Given the impressive economic and market developments and business opportunities, China remains a critical part of Morgan Stanley’s global strategy. Our focus now is to further expand our domestic market platform and capabilities," Gorman said.