The Goldman Sachs Group signed agreement with China's Taikang Life Insurance Co., officially announcing the stake acquisition, but no financial details of the transaction were disclosed.
After the transaction, the Goldman Sachs holds 12.02 percent stake in Taikang, becoming the second biggest shareholder of the leading life insurance company in China.
According to markets estimation, this acquisition cost the New York based investment bank about 800 million dollars for buying shares.
J. Michael Evans, Vice Chairman and Chairman of Asia at Goldman Sachs,said at the signing ceremony that after the 19-month work the transaction was finally accomplished. "We are thrilled to have the opportunity to be an investor, to participate in the continued growth of the insurance industry in China", Evans said.
This investment has been approved both by the Chinese and U.S. regulators. According to analysts, as shareholder, Goldman Sachs would facilitate Taikang to go public and to expand abroad.
Chen Dongsheng, Chairman and Chief Executive Officer of Taikang, said: "I look forward to working in close cooperation with this world class financial institution as we continue to commit ourselves to the development of China's life insurance market and strive to become more global."
