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Auto glass maker to sell Goldman stake

(China Daily)
Updated: 2006-11-21 08:26

US investment bank Goldman Sachs has offered to buy a 9.98 per cent stake in China'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 China's biggest auto glass maker, Fuyao Glass Industry Group Co Ltd, for 890 million yuan (US$113 million). [China 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 China Securities Regulatory Commission.

The transaction is seen by analysts as a vote of confidence by the US investment bank in the future of China's auto market. "It is clear that Goldman is placing its bet on China's fast growing car market," said Zhang Xin, an analyst with Guotai Jun'an Securities.