US investment giant Goldman Sachs said on Wednesday it would keep most of its stake in the Industrial and Commercial Bank of China (ICBC, 中國工商銀行), the Chinese banking titan, at least through April next year.
New York-based Goldman Sachs, which holds a stake of 4.93 percent in the world’s biggest bank by market value, said in a statement it would keep at least 80 percent of its ICBC through April 28 next year.
The US firm acquired the stake in 2006 when China’s largest lender completed a record initial public offering. At the time, a Goldman Sachs-led consortium of Allianz Capital and American Express bought a 10 percent stake for US$3.78 billion in the bank.
A statement by ICBC and Goldman Sachs “reaffirmed that they will continue their collaborative efforts” under a January 2006 agreement.
“Today’s announcement underscores our firm’s confidence in ICBC and our commitment to China,” Goldman Sachs chairman and chief executive Lloyd Blankfein said.
“We look forward to working closely with ICBC, one of the most important financial institutions in the world, and further developing our strategic cooperation.”
ICBC chairman Jiang Jianqing (姜建清) said in the statement: “We are delighted that Goldman Sachs will remain a major strategic investor in ICBC. Our relationship over the past three years has proven very successful and we look forward to continued close cooperation between our two firms.”
Under the so-called lock-up deal, the ICBC shares held by Goldman Sachs would have to become free to be sold in equal installments next year on April 28 and Oct. 20.
Under the new lock-up deal, Goldman Sachs agreed not to sell 80 percent of its ICBC shares at any time prior to April next year.
Some reports have said Goldman, looking for cash to repay the US government for its capital injection, might sell part of its ICBC stake.
In a separate statement, American Express said that “depending on market conditions, the company may sell its ICBC shareholding at some point after the lock-up period and will explore all potential methods of sale that would maximize value and minimize market impact, with a preference for a private sale to investors.”
AmEx and ICBC “reaffirmed their strategic cooperative relationship,” a joint statement from Beijing said.
AmEx, whose stake amounts to 0.38 percent of ICBC shares, also has a right to the stake in two equal installments next year on April 28 and Oct. 20.
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
‘DANGEROUS GAME’: Legislative Yuan budget cuts have already become a point of discussion for Democrats and Republicans in Washington, Elbridge Colby said Taiwan’s fall to China “would be a disaster for American interests” and Taipei must raise defense spending to deter Beijing, US President Donald Trump’s pick to lead Pentagon policy, Elbridge Colby, said on Tuesday during his US Senate confirmation hearing. The nominee for US undersecretary of defense for policy told the Armed Services Committee that Washington needs to motivate Taiwan to avoid a conflict with China and that he is “profoundly disturbed” about its perceived reluctance to raise defense spending closer to 10 percent of GDP. Colby, a China hawk who also served in the Pentagon in Trump’s first team,
SEPARATE: The MAC rebutted Beijing’s claim that Taiwan is China’s province, asserting that UN Resolution 2758 neither mentions Taiwan nor grants the PRC authority over it The “status quo” of democratic Taiwan and autocratic China not belonging to each other has long been recognized by the international community, the Mainland Affairs Council (MAC) said yesterday in its rebuttal of Beijing’s claim that Taiwan can only be represented in the UN as “Taiwan, Province of China.” Chinese Minister of Foreign Affairs Wang Yi (王毅) yesterday at a news conference of the third session at the 14th National People’s Congress said that Taiwan can only be referred to as “Taiwan, Province of China” at the UN. Taiwan is an inseparable part of Chinese territory, which is not only history but
INVESTMENT WATCH: The US activity would not affect the firm’s investment in Taiwan, where 11 production lines would likely be completed this year, C.C. Wei said Investments by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in the US should not be a cause for concern, but rather seen as the moment that the company and Taiwan stepped into the global spotlight, President William Lai (賴清德) told a news conference at the Presidential Office in Taipei yesterday alongside TSMC chairman and chief executive officer C.C. Wei (魏哲家). Wei and US President Donald Trump in Washington on Monday announced plans to invest US$100 billion in the US to build three advanced foundries, two packaging plants, and a research and development center, after Trump threatened to slap tariffs on chips made
RSS