Goldman Sachs in partial exit from Geely

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 Zhejiang-based company.

According to a regulatory filing, GS Capital Partners VI Fund and its affiliates exercised a partial conversion of the bonds in the principal amount of RMB770 million ($123 million) last week. The shares were priced at HK$1.85 apiece. The conversion shares represented approximately 5.9% of the enlarged issued share capital of Geely.

In the same transaction, Goldman also asked for the full exercise of a total of 300 million warrant exercise shares, which were priced at RMB1.98 apiece. The shares represented about 3.8% of the enlarged issued share capital.

Goldman held a 17.93% stake as the second-largest shareholder in the automobile company prior to the sell-down. Upon completion of the latest transaction, its still has around 740 million shares.

Sullivan & Cromwell, led by Hong Kong partner Michael DeSombre and New York partner Robert Schlein, advised Goldman Sachs in the transaction.

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• Topics
• Exits
• Greater China
• Industrials
• China
• Goldman Sachs
• Exit