Goldman converts $1.1 bln of SMFG preferred shares

TOKYO, Jan 28 (BestGrowthStock) – Sumitomo Mitsui Financial Group
(8316.T: ) said Goldman Sachs & Co (GS.N: ) had converted its 100
billion yen ($1.11 billion) of preferred shares in the Japanese
lender, effectively ending a capital tie-up that has lasted more
than 20 years.

Sumitomo Mitsui said in a statement that Goldman had
converted the 33,400 preferred shares to 36,343,200 common
shares. The acquisition price was 2,757 yen per share, Sumitomo
Mitsui said.

The move was widely anticipated, as Sumitomo Mitsui said in
January it expected Goldman to convert the shares. Preferred
shares do not count toward the “high quality” capital that will
be emphasised under stricter international banking regulations
now being finalised by the Basel Committee on Banking
Supervision.

Most of the common stock acquired by Goldman will be used to
close out a hedge position and will not be sold on the market,
Sumitomo Mitsui said.
($1=90.25 Yen)

Investing Analysis

(Reporting by David Dolan)

Goldman converts $1.1 bln of SMFG preferred shares