GS Capital Partners VI Fund LP will own 15.1 percent of Geely should it convert the bonds and exercise the warrants, according to a stock exchange statement.

Geely said it may use some of the funds from the note sale for acquisitions.

The Goldman fund can convert its bonds into 908.4 million new shares at HK$1.90 apiece. That means it is already set for a HK$209 million paper profit. The bonds pay 3 percent per annum in interest. New shares created within the first 12 months of the bonds? yet-to-be-set issue date will be subject to a 12- month lock-up period, according to the statement.

The warrants can be converted into 299.5 million new shares at an exercise price of HK$2.30 each.

The company was ranked ninth among China carmakers overall last year in terms of sales. It?s slipped out of the top 10 this year.

Source : Konaxis

According to Goldman Sachs’ latest research report, the buy rating of tencent will be maintained, but it will be deleted from the list of purchases; the target price is raised from 85 Hong Kong dollars to 92 Hong Kong dollars, and the target earnings will be raised from 23 times for fiscal year 2010 to 25 times (based on non-GAAP earnings per share), representing a premium of 10% of market value.

Goldman Sachs said that driven by the emergence of buying rounds actions for the Internet stocks and the first quarter net profit growth of 94 percent over the same period than previous year, since December 15 Tencent have been included in the list, its 84 percent rise significantly outperformed the Morgan Stanley Capital International China Index’s 29 percent increase over the same period, reaching the previous target price of 85 Hong Kong dollar, and so it is no longer in the list.