The Goldman Sachs Group has committed to a new lock-up in relation to its investment in Industrial and Commercial Bank of China under which the company will not sell 80% of its ICBC shares at any time prior to April 28, 2010.
Under the existing lock-up, the Industrial and Commercial Bank of China (ICBC) shares held by Goldman Sachs would have become free in equal installments on April 28, 2009 and October 20, 2009.
In addition, ICBC and Goldman Sachs have reaffirmed that they will continue their collaborative efforts under the existing terms of the January 2006 strategic co-operation agreement. These efforts are focused on sharing global best practices in areas such as credit, market and operational risk management, corporate governance, corporate and investment banking and asset management, said Goldman Sachs Group.
Goldman Sachs’ investment in ICBC represents approximately 4.93% of ICBC’s total outstanding shares. If Goldman Sachs pursues a sale of its ICBC shares that will be released from the existing lock-up on April 28, 2009, it will explore all potential methods of sale that would maximise value and minimise market impact, with a preference for a private sale to investors.
Jiang Jianqing, chairman of ICBC, said: We are delighted that Goldman Sachs will remain a major strategic investor in ICBC. Our relationship over the past three years has proven very successful and we look forward to continued close cooperation between our two firms.
Lloyd Blankfein, chairman and CEO of Goldman Sachs, said: Today’s announcement underscores our firm’s confidence in ICBC and our commitment to China. We look forward to working closely with ICBC, one of the most important financial institutions in the world, and further developing our strategic co-operation.
