Goldman Sachs bags $1bn from sale of stake in China’s ICBC

ICBC

Goldman Sachs Group Inc (NYSE:GS) has received USD1bn (EUR744.6m) in proceeds from the sale of some 1.35bn shares in Industrial and Commercial Bank of China Ltd (HKG:1398), or ICBC, the US investment bank said today.

A Hong Kong-based spokesperson told Bloomberg that Goldman currently has no intention to offload more ICBC shares. The bank has sold the stock at a price of HKD5.77 (USD0.74/EUR0.55) apiece, 3% below the target’s Hong Kong closing of HKD5.95 on Monday.

Meanwhile, the Wall Street Journal’s own sources told the paper that the share sale was two times oversubscribed. According to calculations by the Wall Street Journal, Goldman holds less tha 1% in ICBC after this sale.

Goldman first invested in ICBC in 2006, paying USD2.58bn. Last April, it divested most of its interest in the Chinese bank due to the low performance of its shares in 2011. The bulk of the stock went to Singapore’s state-owned investment firm Temasek Holdings (Private) Limited.

According to data compiled by Bloomberg, the New York-based lender and its funds had sold ICBC units at least four times prior to the latest disposal.

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