M&A

4 November, 2009

Goldman to sell stake in landmark China buyout deal

HONG KONG, Nov 4 (Reuters) - Goldman Sachs (GS.N) has agreed to sell half of its holdings in Shineway Group, China's top meat processor, to a Chinese fund for around $150 million, earning roughly five times its investment from the landmark 2006 deal, sources with direct knowledge of the matter said on Wednesday.

The acquisition attracted wide public interest in 2006, in part because it involved foreign investors taking a stake a national brand and industry leader. It also was among the first leveraged buyouts by foreign investors in China.

Sources said the Asia Special Situation Group (ASSG) of Goldman Sachs signed a deal last week to sell part of its stake in Shineway to CDH Investments, an influential Chinese private equity fund and already a major shareholder of the meat processor. Shineway has a listed arm, Henan Shuanghui Investment & Development Co Ltd 000895.SZ.

Goldman plans to sell another chunk of its stake soon, the sources said, which would bring its ownership of the parent group down to 5 percent. Shineway, Goldman Sachs and CDH declined to comment.

($1=6.827 Yuan) (Reporting by George Chen and Michael Flaherty; Editing by Ken Wills)

Source: http://www.reuters.com