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
Reuters.

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