Goldman seeks to sell ICBC stake
Source: Bloomberg News |
January 29, 2013, Tuesday
|
Print Edition
Print Edition
GOLDMAN Sachs Group is seeking to sell a US$1 billion stake in the Industrial and Commercial Bank of China after the world's biggest lender by market value rebounded almost 50 percent from last year's low.
The shares are being offered at HK$5.77 (77 US cents) each, 3 percent lower than the Chinese lender's HK$5.95 closing price in Hong Kong yesterday, according to a term sheet obtained by Bloomberg News. The document doesn't indicate the specific number of shares offered.
Investing in local lenders in China is reaping bigger profits for foreign banks than operating their own franchises in the world's second-largest banking market.
The Western firms' gains on those stakes are set to exceed their investments with more than US$20 billion in holdings remaining even after they recouped about US$24 billion.
The Wall Street firm is selling down an investment first made in January 2006 when New York-based Goldman Sachs and client funds it manages agreed to invest US$2.58 billion in Beijing-based ICBC.
The bank and the funds have offloaded ICBC shares at least four times prior to yesterday's effort, data compiled by Bloomberg News show.
ICBC has gained over 8 percent so far this year and about 15 percent since Goldman Sachs's private equity funds sold a US$2.5 billion stake in April to Singapore's Temasek Holdings Pte.
The bank and its funds have divested at least US$7.76 billion worth of ICBC shares in four sales since June 2009, according to data compiled by Bloomberg News.
Global banks and financial institutions including Temasek, Bank of America Corp and Citigroup Inc invested a combined S$33 billion (US$26.65 billion) in Chinese banks from 2001 to 2009, according to data compiled by the China Banking Regulatory Commission.
Their profits from selling down those stakes overshadow the US$10 billion that global banks have jointly earned over the past decade from their own franchises in China, the CBRC data show.
The shares are being offered at HK$5.77 (77 US cents) each, 3 percent lower than the Chinese lender's HK$5.95 closing price in Hong Kong yesterday, according to a term sheet obtained by Bloomberg News. The document doesn't indicate the specific number of shares offered.
Investing in local lenders in China is reaping bigger profits for foreign banks than operating their own franchises in the world's second-largest banking market.
The Western firms' gains on those stakes are set to exceed their investments with more than US$20 billion in holdings remaining even after they recouped about US$24 billion.
The Wall Street firm is selling down an investment first made in January 2006 when New York-based Goldman Sachs and client funds it manages agreed to invest US$2.58 billion in Beijing-based ICBC.
The bank and the funds have offloaded ICBC shares at least four times prior to yesterday's effort, data compiled by Bloomberg News show.
ICBC has gained over 8 percent so far this year and about 15 percent since Goldman Sachs's private equity funds sold a US$2.5 billion stake in April to Singapore's Temasek Holdings Pte.
The bank and its funds have divested at least US$7.76 billion worth of ICBC shares in four sales since June 2009, according to data compiled by Bloomberg News.
Global banks and financial institutions including Temasek, Bank of America Corp and Citigroup Inc invested a combined S$33 billion (US$26.65 billion) in Chinese banks from 2001 to 2009, according to data compiled by the China Banking Regulatory Commission.
Their profits from selling down those stakes overshadow the US$10 billion that global banks have jointly earned over the past decade from their own franchises in China, the CBRC data show.
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