Geely shares surge following Goldman investment

Geely Automobile Holdings’ stock surged to a nine-year high on the back of confirmation that the company will sell US$334 million in convertible bonds and warrants to a fund managed by Goldman Sachs, Bloomberg reported. Geely shares rose as much as 26% to HK$2.25 (US$0.29) in morning trading on Wednesday. The company, whose parent firm is believed to be considering a bid for Volvo – said it might use some of the funds raised from the note sale for acquisitions. Geely’s stock has more than tripled this year, compared a 50% gain in the benchmark Hang Seng Index. Should the Goldman fund, GS Capital Partners VI Fund LP, convert the bonds and exercise the warrants, it will hold a 15.1% stake in the automaker.