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Over the years, Goldman Sachs (NYSE: GS) has amassed a hefty portfolio of investments.
And now the firm may be ready to take some money off the table -- especially to pay down the onerous TARP loans.
According to a report in the Wall Street Journal [a paid publication], it looks like Goldman is thinking about unloading a part of its 4.9% stake in the Industrial & Commercial Bank of China Ltd. It could result in more than a billion in cash (or about 15% to 20% of the equity stake). The deal could happen by late April (this is when a lock-up expires on the investment).
Keep in mind that Goldman invested in ICBC in April 2006. Since then, the value of the stake has spiked by 3X to $7.5 billion or so.
Although, there could be a hitch (doesn't this seem to be the case for all mega-deals?). That is, China may place some resale restrictions on foreign investors. This could happen as early as May. So the clock is ticking for Goldman.
Also, China remains a massive market opportunity for Goldman. So, the firm needs to be fairly cautious with these matters.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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