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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 24, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Goldman to invest HK$2.6b in China's Geely Automobile
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(SHANGHAI) Chinese car maker Geely Automobile said yesterday that it will raise about US$334 million in a deal with an affiliate of Goldman Sachs, building up cash for a possible takeover of Ford Motors Co's Volvo Cars.
By midday, shares in Geely's Hong Kong-traded unit were up 18 per cent at HK$2.11 after the company announced it would issue HK$2.586 billion (S$472 million) in convertible bonds and warrants to Goldman Sachs Capital Partners VI Fund.
The money raised will be used to pay for potential acquisitions and other needs, Geely said in a statement to the Hong Kong Stock Exchange.
If the Goldman Sachs fund fully converts the bonds and exercises the warrants issued by Geely, it could hold 15.1 per cent of the Chinese company's enlarged share capital.
Geely's announcement made no mention of the company's interest in Volvo, though a company spokesman confirmed earlier that the Hangzhou- based automaker's parent company was considering bidding for the Swedish automaker.
Geely, one of China's leading domestic automakers, is among several Chinese companies that have shown interest in Volvo and other European car companies.
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</TD></TR></TBODY></TABLE>Chinese domestic automakers like Geely lag behind their global rivals in many ways and are eager to improve their competitiveness by acquiring foreign brands that might help them improve their technology and expand into overseas markets. -- AP
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Goldman to invest HK$2.6b in China's Geely Automobile
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right></TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right></TD><TD>Feedback</TD></TR></TBODY></TABLE>(SHANGHAI) Chinese car maker Geely Automobile said yesterday that it will raise about US$334 million in a deal with an affiliate of Goldman Sachs, building up cash for a possible takeover of Ford Motors Co's Volvo Cars.
By midday, shares in Geely's Hong Kong-traded unit were up 18 per cent at HK$2.11 after the company announced it would issue HK$2.586 billion (S$472 million) in convertible bonds and warrants to Goldman Sachs Capital Partners VI Fund.
The money raised will be used to pay for potential acquisitions and other needs, Geely said in a statement to the Hong Kong Stock Exchange.
If the Goldman Sachs fund fully converts the bonds and exercises the warrants issued by Geely, it could hold 15.1 per cent of the Chinese company's enlarged share capital.
Geely's announcement made no mention of the company's interest in Volvo, though a company spokesman confirmed earlier that the Hangzhou- based automaker's parent company was considering bidding for the Swedish automaker.
Geely, one of China's leading domestic automakers, is among several Chinese companies that have shown interest in Volvo and other European car companies.
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