CITIC Pacific agrees asset sale, expects $301mn profit

HONG KONG: Hong Kong listed China conglomerate CITIC Pacific Ltd said it expected to make a profit of $301 million from the sale of its stake in investment holding company CITIC Guoan.

CITIC Pacific has agreed to sell its 50 percent non-controlling interest in Guoan for 3.5 billion yuan ($543 million), a move to allow it to focus on three major business lines, special steel making, iron ore mining and property development in China, the company said in a statement to the Hong Kong stock exchange late on Friday.

CITIC Guoan holds interests in cable TV, system integration and software development in China, and has a 41.42 percent interest in Shenzhen-listed Guoan Information.

Separately, CITIC Pacific also said in a release on Friday it expected delays in production and export of iron ore from its Western Australia project to the first half of 2012 from the end of 2011.

Copyright Reuters, 2011