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China,Hong Kong : Temasek buys US$2.3b ICBC shares from Goldman
Publish Date : 17-Apr-2012
Temasek Holdings added a sizeable China bank stake to its financial institutions portfolio, scooping up a 5.3 per cent chunk of ICBC\'s Hong Kong-listed shares from seller Goldman Sachs.
Temasek agreed to buy US$2.3 billion worth of H-shares in the Industrial and Commercial Bank of China, the world\'s largest bank by market value. The purchase amounts to a 1.3 per cent stake in ICBC, a Temasek spokesman said.
The Singapore state investor already owns stakes in China Construction Bank and Bank of China.
The deal for ICBC brings Temasek deeper into China\'s banking industry, which has grown from insolvency six years ago to a sector that holds four of the world\'s top ten banks by market value.
China\'s banking industry, however, has also come under fire lately, as people and politicians have cried out that the sector\'s massive profits are coming at the expense of citizens.
Low deposit rates, coupled with steady customer fees are at the heart of the protests.
The total value of Goldman\'s block sale was US$2.5 billion, continuing with its plan to reduce its stake in ICBC, which it bought into prior to ICBC\'s 2006 IPO. After the sale, Goldman will have roughly US$3 billion of ICBC shares remaining.
Goldman sold the Hong Kong traded shares of ICBC at HK$5.05 each, or a 3.1 per cent discount to Friday\'s closing price. The other, roughly US$200 million worth of shares were sold to other institutional investors, according to a source.
