Hopu Investment Management Co., led by Goldman Sachs Group Inc’s China partner Fang Fenglei, on Tuesday acquired a 5.8 percent stake in China construction Bank Corp for about $7.3 billion from struggling Bank of America Corp, people with knowledge of the matter told Bloomberg.
BofA is selling its investment as it looks to raise up to $33.9 billion dollars to satisfy U.S. government demands for capital to protect itself against a worse than expected economic outlook.
Hopu, which includes Singapore’s sovereign wealth fund Temasek Holdings Pte as a partner, bought 13.5 billion shares at HK$4.20 a piece, according to the report.
Fenglei is a well-connected executive who formerly worked for the Bank of China before joining Goldman Sachs Gao Hua Securities Company Limited. The firm, which he currently leads as Chairman, is a joint venture established in 2004 between Goldman Sachs and Beijing Gao Hua Securities Co. Limited, which is based in Beijing.
Fenglei and Temasek launched Hopu as a joint venture in 2007.
China Life Insurance Asset Management Co. bought $1.5 billion worth of Construction Bank shares on behalf of its parent company and other affiliates, the people told Bloomberg.