Estate to sellKamehameha Schools intends to sell another chunk of its holdings in Goldman Sachs Group Inc., a block of shares worth about $386 million.
42% of Goldman
Kamehameha Schools willFrom staff and news services
divest 4 million shares and
pocket about $386 million
In a filing with the U.S. Securities and Exchange Commission before the stock markets opened today, the $6 billion trust said its Kamehameha Activities Association intends to sell just over 4 million of its Goldman Sachs shares, or about 42 percent of its holding in the big investment firm.
The sale will leave Kamehameha with about a 1.1 percent holding in Goldman Sachs. The company's shares closed down $1.91 today at $95.66 on the New York Stock Exchange.
Kamehameha Activities, a charitable organization that provides funds to Kamehameha Schools, sold 1.5 million of its Goldman Sachs shares in February at $108.76 a share.
After the latest sale, the trust would still hold Goldman stock worth about $527 million.
Established in 1884 to educate children of native Hawaiian ancestry, Kamehameha Schools is Hawaii's largest private land owner and one of the nation's wealthiest charitable trusts. It initially invested $500 million in Goldman starting in 1992 under the direction of then-trustee Matsuo Takabuki. It got almost all of its investment back when Goldman had an initial public offering in May 1999. At the time, the estate sold 9 million Goldman shares for a total of $477 million.
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 also earned about $900 million in partnership distributions prior to Goldman Sach's public offering.
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 Kamehameha Schools' ambitious expansion of its educational programs.
Goldman Sachs issued a brief statement today saying the pending sale is the subject of a registration statement filed at the SEC.
The statement contains standard legal language that the registration has not yet become effective and the stock may or may not be sold.
Founded in 1869, Goldman Sachs is one of the oldest and largest investment banking firms. It is headquartered in New York and has offices in Frankfurt, Tokyo, Hong Kong and other international financial centers.
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