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Reports: Goldman Sachs Exits Remaining Stake In China's ICBC For $1.1 Bln

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5/20/2013 11:05 PM ET

Financial services firm Goldman Sachs Group, Inc. (GS: Quote) has exited its entire stake in Chinese lender Industrial & Commercial Bank of China Ltd. or ICBC, with a $1.12 billion stake selldown, according to media reports on Monday.

The New York-based investment banking firm has sold its entire remaining stake of 1.57 billion Hong-Kong listed ordinary shares of ICBC, at the top end of its offering price range of HK$5.47 to HK$5.50 per share or $0.70 to $0.71 per share. The sale represents a 2.5 percent discount over ICBC's closing share price of HK$5.64 on the Hong Kong stock exchange on Monday.

Goldman Sachs, the fifth-biggest US bank by assets, has held a stake in Beijing, China-based ICBC since 2006, and has been exiting the entire stake in several tranches.

This sale is the third in the past one year as well as the sixth and final sale of ICBC shares since June 2009. Including the current sale, Goldman Sachs will have raised about $9.9 billion from several block trades of ICBC shares.

Goldman Sachs made the strategic investment of $2.58 billion in April 2006 for a 4.9 percent stake in ICBC, which was among the first investments by foreign investors in China. The investment in ICBC was made just months before the Chinese bank's mega initial public offering in Hong Kong in October 2006.

Earlier, Goldman Sachs has raised $1.0 billion in January 2013, $2.5 billion in April 2012, $1.1 billion in November 2011, $2.25 billion in September 2010 and $1.91 billion in June 2009.

The stake sale will help boost Goldman Sachs' capital positions in order to meet the requirements of Basel III regulatory banking standards, which went in force from January 1, 2013.

GS closed Monday's regular trading session at $158.90, up $0.72 or 0.46% on a volume of 4.01 million shares.

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by RTT Staff Writer

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