BIZCHINA / Pilot
Goldman Sachs buys 2.25 per cent ZTE shares
(China Daily HK Edition)
Updated: 2005-11-12 13:55
ZTE Corp, China's second biggest telecoms equipment maker, said on Friday
that US investment bank Goldman Sachs had bought 2.25 per cent of the
company's issued share capital.
ZTE said in a statement that Goldman's subsidiary Jade Dragon (Mauritius)
Ltd had bought 21.57 million non-traded legal person shares of ZTE from
Fortune Trust & Investment Co Ltd.
The company did not give the dollar value of the stake sale, but based on
the firm's market capitalization of HK$22.26 billion (US$2.85 billion) as
at midday on Friday, a 2.25 per cent stake would be worth around HK$500.9
million (US$64.2 million).
The mainland-based Fortune Trust had ceased to hold any shares in ZTE,
the statement added.
ZTE said Jade Dragon had also agreed to participate in possible company's
state-share reform in the future. It gave no further details.
Beijing in April revived a controversial programme to float US$250
billion of non-traded state holdings in listed firms, aimed at making
firms more transparent and financing a patchy pension system.
A legacy of a centrally planned economy, state shares directly controlled
by governments at all levels or institutions they control account for
two-thirds of the US$415 billion capitalization of the Shanghai and
Shenzhen stock exchanges.
In October, ZTE reported a 27.4 per cent fall in the third quarter profit
to 154.83 million yuan based on Chinese accounting standards as weak
capital spending by telecoms firms outweighed strong exports.
Shares of ZTE, which have fallen 10.4 per cent over the past three
months, rose 0.87 per cent to HK$23.20 by the midsession on Friday.
(For more biz stories, please visit Industry Updates)
Most Popular Stories in 48 Hours
� Baidu's Li smells fortune in mobile phone users
� Shanghai Auto turns around
� DVD royalty agreement signed
� Central bank raises lending rate
� American way of life
Today's Top News
� President ends African tour by drumming for dancers
� Housing fund ups mortgage rates
� Militants warn Chinese oil companies
� Q1 urban unemployment rate at 4.2 pct
� Pay rises by 16% for State sector workers
Top Biz News
� China's state pension fund permitted to invest overseas
� Lower Q1 NPL ratio for major banks
� Housing mortgage loan rates raised
� China builds railway corridor in rust belt region
� Pay rises by 16% for State sector workers
Learn mandarin
