The Wall Street Journal-20080124-Goldman Bets on Chinese Solar Power
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Goldman Bets on Chinese Solar Power
Goldman Sachs Group Inc. and CDH Investments have signed a preliminary agreement to invest about $100 million in a Chinese maker of solar water heaters, according to a person familiar with the deal.
The minority investment in Himin Solar Energy Group Co. is a bet on the growth of China as both a source of demand for, and exporter of, renewable-energy technology. Investors have been keen to take advantage of those trends, buying into initial public offerings of solar-focused businesses.
Shares in U.S.-traded firms such as Suntech Power Holdings Co. and Yingli Green Energy Holding Co. have recently come down from earlier highs on broader weakness in the U.S. markets.
The person said the details of the investment pact, including the stake sizes for Goldman and CDH, a private-equity outfit focused on private Chinese companies, are still being finalized.
China's government has set a goal of doubling the share of renewable energy in its energy mix to 15% by 2020.
