Geely rallies post Goldman investment

Goldman Sachs' HK$2.59 billion investment in Geely Automobile Holdings, the Hong Kong-listed arm of China's biggest privately owned carmaker Geely Holding Group Co, boosted the latter's shares by 18.99 percent yesterday on the Hong Kong Stock Exchange, its highest since 2000.

Geely Auto said in a statement released yesterday that it would issue HK$1.897 billion worth of 3 percent convertible bonds due 2014, and 299.53 million call warrants valued at HK$2.3 per share to GS Capital Partners VI Fund under Goldman Sachs Group Inc.

Once the deal is done, Goldman Sachs would hold 17.8 percent stake in Geely, while its Chairman Li Shufu would hold 43.75 percent of the company, dropping from the earlier 51.54 percent.