Goldman Sach Buys Into Chinese Auto Glass Maker

Date: 1 December 2007
Goldman Sachs Group plans to buy 10 percent of Fuyao Group Glass Industries, the biggest maker of automotive glass in China, for 890 million yuan, or $113 million, Fuyao said Monday.

Goldman's GS Capital Partners V fund plans to buy 111.28 million shares in the glass maker for 8 yuan each and hold them for three years, Fuyao said in a statement to the Shanghai Stock Exchange. That is a 19.9 percent discount to Fuyao's closing share price Wednesday of 9.99 yuan.

Fuyao shares rose Monday 5.8 percent to close at a record of 10.57 yuan as it resumed trading after a two-day suspension. The shares have doubled in value this year.

Goldman Sachs is taking advantage of Chinese efforts to let overseas investors purchase strategic stakes in its publicly traded companies to tap the world's fastest-growing major car market. Goldman and its partner, CDH China Growth Capital Fund II, are also buying Shuanghui Group, the largest meat processor in China, for $252 million.

"Fuyao dominates China's vehicle glass market and is increasing supplies to international automakers to boost earnings," said Luo Wei, an analyst at China International Capital in Shanghai, in a research note Monday. The stake sale would help reduce the company's financial expenses, increasing profit by 32 percent next year and by 30 percent in 2008, he said.

600450 Goldman Sach Buys Into Chinese Auto Glass Maker
Date: 1 December 2007

See more news about:

See more from these topics:

Others also read

For the first time, LandGlass presented both of its core products.
AluK will showcase its superior, top-level products, and share its expertise in the field of windows and doors.
China Ginza Tokyo is a luxurious and unique building expressing the spirit of Chanel through a façade generating images and acting as lighting for the building.
Moen Glass PTY LTD, based in Victoria, Australia, was incorporated in 1984. It is a family owned manufacturing company, dedicated to servicing the glass and window industries throughout Australia.
China’s largest glass manufacturer is planning to raise its investment in Malaysia by 100% to US$400mil (RM1.6bil) and to set up its overseas headquarters in Kuala Lumpur, group chairman Ge Wenyao told visiting Malaysian minister Datuk Seri Ong Ka Chuan.
Located in Luoyang, China, LandGlass Technology Co., Ltd. was formed as a high tech enterprise specialized in the development and manufacturing of high quality innovative glass tempering furnaces at first.

From industry

Add new comment