Goldman to raise up to $315m in Geely Auto sell down

The Goldman unit is offering 578 million Geely shares at HK$4.10-4.23 apiece, representing a 4.08-7.03% discount to Tuesday's closing price, according to a term sheet seen by The Wall Street Journal. Goldman is the sole bookrunner for the transaction.

Geely announced Tuesday that it had issued 528 million conversion shares at HK$1.84 apiece and will pay HK$121.05 million ($16 million) in cash to GS Capital Partners VI Fund, an entity owned by Goldman, following the conversion of its bonds, according to a regulatory filing.

Goldman requested to exercise a full conversion of bonds in the principle amount of RMB901 million ($147 million) on Monday.

As of June, Goldman held an 8.05% stake in Geely.

Last year, it sold 600 million Geely shares in a deal worth $254 million. The shares were divested after the Goldman exercise a combination of convertible bonds and warrants.

Goldman held a 17.93% stake as the second-largest shareholder in the automobile company prior to the first sell-down. In 2009, Goldman bought about $245 million of convertible bonds in Geely. It also acquired warrants that, if exercised along with shares converted from the bonds, would give the firm a stake of around 15% in the company.

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• Topics
• Greater China
• Exits
• Industrials
• China
• Exit
• Goldman Sachs
• Sell down
• automobiles