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China stock watchdog rejects sale of Midea Electric stake to Goldman Sachs

China stock watchdog rejects sale of Midea Electric stake to Goldman Sachs

China's securities regulator has rejected a plan by Guangdong Midea Electric Appliances Co. to sell a stake to Goldman Sachs Group Inc., the Chinese home-appliance maker says.
In a notice dated Wednesday, Midea did not give a reason for the China Securities Regulatory Commission's rejection of the sale, agreed upon last November.
A report in the state-run newspaper Shanghai Securities News Thursday said the decision may have hinged on technical aspects of Midea's application, suggesting the deal might eventually go ahead.
The Ministry of Commerce earlier approved the plan by Midea, based in the southern city of Shunde, to sell 75.6 million new yuan-denominated shares to GS Capital Partners Aurum Holding, a unit of Goldman Sachs. The deal was meant to raise 716.64 million Chinese yuan (US$94 million; euro70.66 million).
Based on Midea Electric's share capital after the issue, the size of the stake would be around 10.7 percent.
Midea's shares, traded on China's Shenzhen Stock Exchange, were down 4 percent at 32.21 yuan late Thursday morning.


Updated : 2021-05-11 18:56 GMT+08:00