Fuyao Glass to issue shares to Goldman Sachs units

Fuyao Group Glass Industries Co Ltd said 20 November 2006 its board has approved a proposal to issue 111.28 million new shares at CNY 8.00 each through private placement to GS Capital Partners V Fund …

Fuyao Group Glass Industries Co Ltd said 20 November 2006 its board has approved a proposal to issue 111.28 million new shares at CNY 8.00 each through private placement to GS Capital Partners V Fund LP or its affiliates, all controlled by Goldman Sachs Group Inc. Following the deal, GS Capital or its affiliates will become strategic investors of Fuyao Glass, one of China“s main auto glass companies, the company said in a statement filed with the Shanghai Stock Exchange. Fuyao Glass said it will use about 80% of the proceeds to settle loans and the rest to supplement working capital. The deal is subject to approval by the Ministry of Commerce and the securities regulator. Trading of Fuyao Glass shares was suspended on Nov 16 November 2006 ahead of the announcement. The firm did not say when trading would resume.