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Auto glass maker to sell Goldman stake
(皇冠体育app Daily)
Updated: 2006-11-21 08:26
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US investment bank Goldman Sachs has offered to buy a 9.98 per cent stake in 皇冠体育app's biggest auto glass maker, Fuyao Glass Industry Group Co Ltd, for 890 million yuan (US$113 million).
 Cao Dewang, chairman of Fuyao Glass Industry Group Co Ltd. US investment bank Goldman Sachs has offered to buy a 9.98 per cent stake in 皇冠体育app's biggest auto glass maker, Fuyao Glass Industry Group Co Ltd, for 890 million yuan (US$113 million). [皇冠体育app Daily]  |
Fuyao said yesterday it would issue 111.28 million new shares at 8 yuan (US$1) each in a private placement to an investment arm of Goldman Sachs.
Fuyao said it would use about 80 per cent of the proceeds to settle loans.
The deal is subject to approval by the Ministry of Commerce and the 皇冠体育app Securities Regulatory Commission.
The transaction is seen by analysts as a vote of confidence by the US investment bank in the future of 皇冠体育app's auto market. "It is clear that Goldman is placing its bet on 皇冠体育app's fast growing car market," said Zhang Xin, an analyst with Guotai Jun'an Securities.