UPDATE 1-Carlyle sells $860 mln stake in China Pacific-source

* Carlyle recoups most of its initial investment

* Carlyle held 15.4 percent of China Pacific before sell-down
(Adds details, background)

Vikram Subhedar and Denny Thomas

HONG KONG, Dec 30 (BestGrowthStock) – Carlyle Group [CYL.UL] has sold
an about $860 million stake in China Pacific Insurance (Group) Co
Ltd (2601.HK: ), a source with direct knowledge of the matter told
Reuters on Thursday, as the private equity fund partially exited
the five-year-old investment.

China Pacific has been a lucrative investments for Carlyle,
which paid just over $800 million in a series of investments
between 2005 and 2007 for its stake, sources previously told

Some traders were expecting Carlyle to offload part of its
stake in China Pacific after the lock-up period for its
investment expired last week. As a result, China Pacific’s Hong
Kong-listed shares rose as much as 3.7 percent to HK$32.50 on
Thursday, outpacing the Hang Seng Index (.HSI: ).

Carlyle sold 215 million shares in China Pacific at HK$31.15
each, the source added.

Carlyle declined comment, while China Pacific could not
immediately be reached for comment. UBS AG (UBSN.VX: ), the sole
arranger for the deal, also declined comment.

Before the sell-down, Carlyle held a 15.4 percent stake in
China Pacific’s overall outstanding shares.

China Pacific, the nation’s third-largest life insurer,
raised $2.04 billion through a Hong Kong initial public offering
in December 2009. That paved the way for Carlyle to exit its
investment, although it was restricted from selling any shares
for a year from the listing.
(Additional reporting by Donny Kwok; Editing by Chris Lewis)

UPDATE 1-Carlyle sells $860 mln stake in China Pacific-source