Goldman Sachs is now in the process of selling its shares in the Hong Kong bourse. The shares are for the Commercial Bank of China and is estimated to be worth US$1.1 billion. The sale is the last remaining shareholdings of the buyout firm in the world's largest bank in terms of market value.
The sale would be the end of Goldman's investment it had made together with clients and employees in ICBC. Before the 2006 IPO, ICBC was a financially beleaguered state owned financial institutiion wracked by bad loans made that was present during those times. There was a turnaround though when the bank went public. The bank grew as the Chinese economy boomed. Currently, it has a US$240 billion market valuation, a tad short of the combined worth of Barclays and JP Morgan.
The initial investment of Goldman Sachs was at US$2.58 billion first made in January 2006. The fund was a mix of client, employee and corporate cash funding. This investment has since been sold through six separate deals since 2009. Since that 2006, Goldman Sachs has reported net revenues reaching US$3.5 billion related to ICBC in its quarterly reports.
The shares are being sold between HK$5.47 and HK$5.50 per share, a 3% discount from Mondays trading value closed at HK$5.64.
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