CHINA / National |
Goldman buys into Chinese appliance maker(Reuters)Updated: 2007-06-15 13:37 BEIJING - China's Ministry of Commerce has given its approval for an investment arm of Goldman Sachs to pay about US$350 million for a stake in Midea Group, the leading Chinese household appliance maker said in a notice published on Friday. The ministry gave its go-ahead on Thursday for Midea to issue an additional 75.59 million shares to GS Capital Partners Aurum Holdings, an investment arm of Goldman Sachs, according to a statement published in the China Securities Journal. Midea has to sell the shares for no less than 90 percent of its average share price in the past 20 trading days, the notice said. At Thursday's closing price of 35.88 yuan, Goldman's stake of 10.7 percent is valued at 2.7 billion yuan, or $354 million. The deal was announced in principle in November when Midea said it would sell new shares to Goldman in a private placement at 9.48 yuan apiece, valuing the investment bank's stake then at 717 million yuan. Shares in Midea, a private company that is one of China's biggest makers of appliances including refrigerators and electric fans, have since risen sharply with the rest of the market. The deal still needs final approval by the securities regulator, the notice
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