HONG KONG -(Dow Jones)- Goldman Sachs Group Inc. (GS) agreed to sell half its stake in Chinese meat processor Shineway Group to Chinese private-equity fund CDH Investments for about US$150 million, a person familiar with the deal said Wednesday.
Goldman and CDH banded together in 2006 to acquire Shineway for US$250 million. Goldman's sale of the stake will bring its holding to around 5.5%, the person said.
Goldman's success in acquiring a stake in Shineway, known as Shuanghui Group, came after a long approval process. Regulatory approval was slow in coming because Goldman already owned a 13% stake in China Yurun Food Group Ltd., a major Hong Kong-listed producer of chilled and frozen pork in China and a competitor to Shineway.
-By Ellen Sheng, Dow Jones Newswires; 852-2832-2336; ellen.sheng@dowjones.com