China’s Ministry of Commerce has approved the sale of a 10 percent stake in Shanghai-listed Fuyao Group Glass Industries to Goldman Sachs for $113 million (€83 million), according to the Fujian-based automotive glass maker.
Under the deal, Fuyao will sell as many as 111.28 million shares at 8 yuan a share to GS Capital V Fund, which will hold the shares for at least three years, according to a statement.
Fuyao also said it would re-submit an application for a share placement to the China Securities Regulatory Commission because an existing application had expired from the time Goldman had agreed to the investment last year.
The approval follows a statement Fuyao issued last year specifying Goldman Sachs’ intended investment in the company in November 2006.
Investment approvals in China can take some time, and ahead of the National Congress of the Communist Party of China, there is talk that government approvals for large foreign investments would be stalled as the meeting could produce leadership changes.
Few officials will give the green light for large investments to proceed as they fear coming under fire for selling national assets too cheaply to foreign investors.