Temasek buys shares worth $2.3 billion of ICBC from Goldman Sachs

Temasek Holdings, Singapore's sovereign wealth fund bought Hong Kong-listed shares worth $2.3 billion of China's biggest lender, Industrial & Commercial Bank of China Ltd (ICBC) from Goldman Sachs.

Temasek, which owns stakes in China Construction Bank and Bank of China, bought 3.55 billion or 4 per cent stake in ICBC at HK$5.05 each, a 3.1 per cent discount to stock closing price of HK$5.21 on the Hong Kong Stock Exchange on Friday.

New York-based Goldman sold $2.5 billion worth of H-shares in ICBC with Temasek buying stock worth $2.3 billion, while the remaining were acquired by unnamed institutional investors.

Temasek, which already holds nearly 1 per cent in ICBC H-shares, would post purchase, increase its stake to about 5.3 per cent. The latest investment will now brings Temasek's stake in ICBC's combined Shanghai and Hong Kong share base of ICBC to 1.3 per cent.

Goldman had acquired a 4.9 per cent stake in ICBC in 2006 for $2.58 billion before the Chinese bank went public. Over the years, the Wall Street bank sold parts of its stake for around $5.26 billion.

The last time it pared down its stake in ICBC was in November 2011, when it sold 2.4 billion shares worth around $1.54 billion (See: Goldman Sachs to sell stake worth $1.54 billion in China's ICBC).