MORGAN Stanley is understood to be close to selling its stake in China International Capital Corporation to two private equity operators for more than $1bn (£646m).
Kohlberg Kravis Roberts and TPG Capital are in advanced discussions with Morgan Stanley, it is understood. They would split the Wall Street bank’s 34.3 per cent share of the Beijing-based institution evenly under the terms of a deal.
Morgan Stanley has been pursuing a sale for some time and would be able to pursue a new venture in China after an exit, a condition the securities regulator has demanded.
It is believed that KKR’s Henry Kravis and TPG’s David Bonderman would join the expanded board of CICC after the transaction.