Goldman Sachs invests 2.59 bln HKD in China's Geely

• Source: Xinhua
• [08:02 September 24 2009]
• Comments

China's largest independent carmaker Geely Automobile Holdings Ltd announced Wednesday it will raise 2.59 billion Hong Kong dollars ($334 million) selling convertible bonds and warrants to a fund managed by
Goldman Sachs Group Inc.

Geely's stock rose nearly 26 percent in Hong Kong trading at 2.25 Hong Kong dollars Wednesday morning, the highest in more than nine years. GS Capital Partners VI Fund LP (GSCP) will have 15.1 percent of Geely if it converts the bonds and exercises the warrants, says a statement from Geely.

Geely will use part of the fund for acquisitions.

The carmaker will work with GSCP to further strengthen financial management, operational efficiency and corporate governance practices, said Li Shufu, Geely's chairman.

Geely suspended transactions September 16 and restored them Wednesday.