9.21Geely, Goldman in talks on $250 mln bond deal

Geely, Goldman in talks on $250 mln bond deal

 

http://autonews.gasgoo.com/auto-news/1012267/Geely-Goldman-in-talks-on-250-m
ln-bond-deal.html

 

Shanghai, September 21 (Gasgoo.com) A private equity unit of Goldman Sachs
Group is in talks with Geely Auto to buy about $250 million of the biggest
privately-owned Chinese carmaker's convertible bonds and warrants, media
reported today, citing sources.

 

"The two sides have basically agreed on the investment in Geely already, but
have yet to work out some technical details," one source with direct
knowledge of the deal told Reuters. Confirmation of the deal could be
announced as early as this week.

 

Geely, whose parent is eyeing Ford's Swedish car brand Volvo, plans to use
the proceeds of the $250 million investment to boost its production
capacity, including tripling the annual output at its flagship car plant in
the central province of Hunan to 150,000 units.

 

It will also buy auto-related assets from its parent, Geely Holding Group
Co, said the source. The investment will result in Goldman Sachs Capital
Partners owning a minority stake of about 15% of the Hong Kong-listed Geely
Auto, the Financial Times said.  

 

Geely Auto said earlier this month its parent was considering a bid for
Volvo with a local government-backed investment firm. Its executive director
later told Reuters the bonds and warrants were not related to Volvo.

 

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