THE Chinese tool maker said it received "conditional" regulatory approval to sell a 12.08-percent stake to a Goldman Sachs Group Inc unit.
The China Securities Regulatory Commission gave preliminary approval for the private placement yesterday, Yangzhiguang said in a statement to the Shanghai Stock Exchange.
Jade Dragon (Mauritius) Ltd, fully owned by Goldman Sachs, will pay at least 239.4 million yuan (US$35.3 million) for 60 million new shares Yangzhiguang offered, according to an announcement in August. The acquisition has already been approved by the Ministry of Commerce.
China's securities regulator in August rejected Goldman Sachs's plan to buy 10.7 percent of Guangdong Midea Electric Appliances Co, the nation's largest appliance maker by market value, as the Chinese firm's shares rose more than fivefold during the 10-month long review process. Earlier this month, the US company's proposal to buy 10 percent of Fuyao Group Glass Industrial Co was also rejected as Fuyao's share price surged during a yearlong regulatory process.
Yangzhiguang, based in the southwest city of Chengdu, makes measuring and cutting tools. First-half profit rose 15 percent to 15 million yuan and total assets stood at 591.7 million yuan at the end of June, according to a company filing.