Goldman Chengdu deal approved, pending adjustments
14 November 2007
Chinese regulators approved Goldman Sachs' bid to buy a 12% stake in Shanghai-listed Chengdu Yangzhiguang Industrial, provided that the US firm negotiates a higher price for the shares, The Wall Street Journal reported. The two companies struck a deal in November 2006 allowing Goldman to pay 60 million of a total 370 million new shares issued by the Chinese measuring-tool maker for US$32.3 million. Yesterday, Chengdu Yangzhiguang Industrial's shares closed at RMB25.83, roughly three times the market price when the deal was made, making a full approval of the deal unlikely. Goldman is currently in talks with Chinese regulators about how to revise its bid. Regulators blocked the company's latest two bids for Chinese firms, involving Fuyao Glass and Midea Appliances, citing similar reasons.