Goldman Sachs is paring its stake in Industrial & Commercial Bank of China, hoping to raise about $1.5bn by selling more than 2bn shares in the lender, people familiar with the matter said.
Goldman’s five-year-old stake in ICBC, one of its biggest equity investments, has proved profitable to the New York-based company, as its initial $2.6bn investment has already generated gains of roughly $4.2bn following sales in 2009 and 2010. Its remaining stake was valued at $6.7bn at September 30.
ICBC shares will be sold at a slight discount to its last traded price. Goldman is trimming its investment in order to book profits now as volatility continues to rock ICBC shares. Goldman, the most profitable Wall Street securities company, wrote down its ICBC holdings by $1bn last quarter.