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Geely rallies post Goldman investment
By Li Fangfang (China Daily)
Updated: 2009-09-24 08:26 ![]() Sorry, the page you requested was not found.Please check the URL for proper spelling and capitalization. If you're having trouble locating a destination on Chinadaily.com.cn, try visiting the Chinadaily home pageCopyright 1995 -
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![]() ![]() Goldman Sachs' HK$2.59 billion ($334 million) investment in Geely Automobile Holdings, the Hong Kong-listed arm of China's biggest privately owned carmaker Geely Holding Group Co, boosted the latter's shares by 18.99 percent yesterday on the Hong Kong Stock Exchange, its highest since 2000. Geely Auto said in a statement released yesterday that it would issue HK$1.897 billion worth of 3 percent convertible bonds due 2014, and 299.53 million call warrants valued at HK$2.3 per share to GS Capital Partners VI Fund under Goldman Sachs Group Inc. Once the deal is done, Goldman Sachs would hold 17.8 percent stake in Geely, while its Chairman Li Shufu would hold 43.75 percent of the company, dropping from the earlier 51.54 percent. Geely's shares closed at HK$2.13 in Hong Kong yesterday, after being suspended from trading for the past week.
Earlier this month, Gui Shengyue, executive president of Geely Auto, had confirmed that its parent company Geely Group might acquire Volvo in alliance with financial institutions. However, the investment is far lower than Volvo's price of over $2 billion. This is the Hangzhou-based carmaker's second money-raising move for acquisitions this year. In May, Geely's parent raised about HK$750 million through the sale of 800 million existing Geely Auto shares at HK$1.35 apiece to more than six investors and then buying 570 million new ones at the same price. The company said it would use part of money from the share sale to fund its successful acquisition to Australian automatic transmission supplier Drivetrain Systems International. (For more biz stories, please visit Industries)
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