Anglo Chinese advises CITIC Pacific to accept rescue plan

Dec. 3, 2008 (China Knowledge) - Anglo Chinese Corporate Finance, has recommended CITIC Pacific<267>'s shareholders to give green light to the rescue plan from parent CITIC Group at the meeting scheduled to be held in Dec. 19, the South China Morning Post reported on Wednesday.

Anglo Chinese, which has been assigned as financial adviser to CITIC Pacific's independent board committee's shareholders on the rescue plan, said in a circular that the deal is fair and reasonable and in the interest of CITIC Pacific and independent shareholders.

In November, China's largest state-owned investment enterprise CITIC Group announced it had agreed to provide an HK$11.6 billion standby loan to its Hong Kong-listed unit CITIC Pacific in exchange for convertible bonds of the same amount, and it would also assume all liabilities worth of HK$9.3 billion from CITIC Pacific's derivatives contracts that bet on the movement of the Australian dollar.

In late October, Hong Kong's Securities and Futures Commission (SFC) announced it had started probing into the company for delaying an announcement for six weeks about its potential US$2 billion losses from unauthorized currency trading.