UPDATE 2-Goldman to sell stake in landmark China buyout deal

miércoles 4 de noviembre de 2009 11:00 CET

* Goldman to sell about half of Shineway stake for big profit

* Goldman will keep roughly 5 percent stake in parent company

* CDH, Temasek, New Horizon remain as key shareholders

* Shineway is China's No.1 meat processor (Adds quotes, more shareholders and background)

By George Chen and Michael Flaherty

HONG KONG, Nov 4 (Reuters) - Goldman Sachs (GS.N: Cotización) has agreed to sell half of its holding in Shineway Group, China's top meat processor, to a Chinese fund for about $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 in a national brand and industry leader. It was also among the first leveraged buyouts in China by a group of foreign investors, which included Singapore's state investor Temasek Holdings [TEM.UL].

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, well known in China for its sausage products, has a listed arm, Henan Shuanghui Investment & Development Co Ltd 000895.SZ.

ASSG was one of Goldman's best and fastest profit streams in the region, but its prominence within Goldman has faded since the financial crisis. Several ASSG star bankers, including its co-head Zhang Yi, have left the firm.   Continuación...