Morgan Stanley gets nod for CICC stake sale: paper

SHANGHAI (BestGrowthStock) – Morgan Stanley (MS.N: ) (Read more about the money market today. ) has obtained regulatory approval for its planned sale of a 34.3 percent stake in Chinese investment bank China International Capital Corp (CICC), state media reported on Tuesday.

Morgan Stanley was in late stage talks to sell its stake in CICC to Kohlberg Kravis Roberts & Co and TPG Capital for more than $1 billion, sources told Reuters in February.

The relevant authorities had agreed to Morgan Stanley’s plan to exit from CICC but they still need to carry out a procedural review before handing out the official approval, the Shanghai Securities News reported, without citing any sources.

The approval process is expected to be concluded by the end of this month, it added.

Morgan Stanley had made known its intention to form a new joint venture with China Fortune Securities Co.

But the U.S. investment bank must complete the sale of its CICC stake, for which it paid just $37 million when the Chinese bank was founded more than a decade ago, before it can proceed with the joint venture plan.

China’s securities rules require that foreign companies can only have one joint venture at a time in China.

(Reporting by Soo Ai Peng; Editing by Dhara Ranasinghe)

Morgan Stanley gets nod for CICC stake sale: paper