The private equity arm of Goldman Sachs has raised about $254m by selling down its 17.93 per cent stake in Geely, the Hong Kong-listed car giant the firm first invested in three years ago.
GS Capital Partners has sold 600 million shares in the China, Zhejiang-based company after exercising a combination of convertible bonds and warrants.
The firm bought about $245m of convertible bonds in the company in 2009 through its GS Capital Partners VI vehicle, which closed in 2007 with $20bn of committed capital.
The deal also saw the firm buy warrants that would convert to a stake of about 15 per cent if exercised along with shares converted from the bonds.
GS Capital Partners VI Fund and its affiliates exercised a partial conversion of the bonds valued at RMB770m ($124m) last week, according to a regulatory filing.
The conversion of the shares, which were priced at HK$1.85 each, represented 5.9 per cent of Geely’s enlarged issued share capital.
GS Capital Partners has retained about 740 million shares in the business following the sale.
Sullivan & Cromwell advised Goldman Sachs on the deal.
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