Learn Chinese - Goldman approved to buy 10.7% stake in Midea

BIZCHINA / Overseas Investment

Goldman approved to buy 10.7% stake in Midea

(Bloomberg)
Updated: 2007-06-15 16:27

Goldman Sachs Group Inc, the world's biggest securities firm, won
approval from China's Ministry of Commerce to buy a 10.7-percent stake in
Guangdong Midea Electric Appliances Co.

The ministry approved a plan by Goldman unit GS Capital Partners Aurum
Holdings to pay 716.7 million yuan (US$94 million) for the stake in
China's second-biggest publicly traded appliance maker, according to a
statement today to the Shenzhen Stock Exchange. The deal, announced in
November, still requires final approval from the China Securities
Regulatory Commission.

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The Guangdong-based company's stock has surged sixfold this year, making
it the best performer on China's benchmark CSI 300 Index.

Midea said in November last year Goldman will buy 75.6 million new shares
for 9.48 yuan each, or 10.7 percent of the company's enlarged capital.

Overseas investors can acquire strategic stakes in Chinese publicly
traded companies provided they buy at least a 10 percent stake and hold
the stock for three years, the government said last year.

Goldman bought stakes in Fuyao Group Glass Industries Co., China's
biggest maker of automotive glass, and Shuanghui Group, the nation's
largest meat processor.

Midea, which makes air conditioners, electric fans, rice cookers and
other appliances, said in April that its first- quarter profit almost
tripled from a year earlier to 195 million yuan. Sales increased 38
percent to 7.1 billion yuan in the same period.

(For more biz stories, please visit Industry Updates)

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