Goldman Sachs is to sell its remaining stake in Industrial and Commercial Bank of China (ICBC) after making more than $7.3 billion for the investment bank, its private equity funds and some senior partners.
The company has less than half a per cent stake in the Chinese bank, which is the world’s biggest by market value, and is offering it for HK$5.47-HK$5.50 ($0.70-0.71) per share on Monday evening in Hong Kong, according to those familiar with the sale.
The sale has raised around $1.1 billion for the bank.
It comes at a time when Goldman Sachs is keen to bolster its balance sheet ahead of new capital requirements.
ICBC was technically an insolvent state institution prior to its 2006 initial public offering, as it was struggling with the bad loans that had saddled China's financial industry.
However, its fortunes changed when it went public and the bank grew alongside China's economic boom.
By Tony Aynsley