KamehamehaKamehameha Schools said today it earned about $163 million from the sale of a large block of Goldman Sachs Group Inc.'s stock.
selling block of
Kamehameha Schools is
selling $163 million in
Goldman Sachs stock
By Rick Daysog
In a filing with the Securities & Exchange Commission today, the $6 billion charitable trust said its Kamehameha Activities Association sold 1.5 million shares of Goldman Sach's common stock. Kamehameha Schools, the state's largest private landowner and one of the nation's wealthiest charitable trusts, sold the stock yesterday at $108.76 to one unidentified buyer, an estate spokesman said today.
The estate's roughly $163 million gain is 48 percent more than the $110 milllion Kamehameha spent on educational programs in fiscal 1999.
The sale will leave the Kamehameha Schools with about 9.5 million shares, or a 2 percent stake, in the Wall Street investment banking firm, making it Goldman Sach's third-largest institutional shareholder behind Sumitomo Bank Capital Markets Inc. and Janus Capital Corp. The estate's remaining Goldman Sachs stake is worth about $1 billion at today's closing stock price.
Established in 1884 to educate children of native Hawaiian ancestry, Kamehameha Schools initially invested $500 million in Goldman starting in 1992 under the direction of then-trustee Matsuo Takabuki.
Since Goldman's initial public offering in May 1999, the estate has earned more than $1.7 billion from the sale of stock issued by the investment banking firm. The estate has also earned about $900 million in partnership distributions prior to Goldman Sach's public offering.
"(Yesterday's) sale is consistent with our investment policy and is in line with Kamehameha's ongoing migration toward its asset allocation targets," said Wallace Chin, president of Kamehameha Activities.
In the past, the estate has reinvested proceeds from its stock sales in bonds and other fixed-income investments, as part of an overall strategy to diversify its portfolio. Over the long haul, income generated from its Goldman Sachs holdings will help finance the Kamehameha Schools' ambitious expansion of its educational programs.
In addition to Kamehameha Schools, Sumitomo Bank Capital Markets also said today that it expects to raise about $168 million by selling 1.5 million shares of Goldman Sachs. The deal will leave Sumitomo with 14.7 million shares of the company.
The stock of Goldman, one of Wall Street's top investment firms, is up about 25 percent from a year ago. On the New York Stock Exchange today, shares of Goldman Sachs closed at $105.20, down $3.75. It hit a 52-week closing high of $132 on Sept. 11 but later stumbled to a 52-week low of $79.94 on Nov. 22. Of the 17 Wall Street analysts who follow the stock, 11 rate it a "buy" and six rate it a "hold".
Bishop Estate Archive