Trust sells Goldman stock
| • | Kamehameha Schools reaps revenue gains |
Advertiser Staff and News Services
Kamehameha Activities Association, the investment arm of Kamehameha Schools, sold its remaining stake in Goldman Sachs Group Inc., closing out an investment that earned the charity more than $2 billion.
Kamehameha Activities Association sold 5.45 million shares at $93 a share in an exchange arranged by Goldman after the close of trading yesterday.
After the 1.5 percent underwriting fee, Kamehameha's take was about $500 million.
That equals the original investment Kamehameha Activities made in Goldman in the early 1990s, when the investment bank was Wall Street's biggest private partnership. The charity reaped proceeds of $2.05 billion through four prior stock sales after Goldman went public in 1999.
Kamehameha Activities President Wallace Chin said the charity will use the proceeds to pay for the education of native Hawaiians at the Kamehameha Schools and invest with its money managers.
"It has provided us a handsome return," said Chin. "In managing the overall endowment, there are home runs and there are strikeouts," he said, adding that this investment could be called a grand slam.
Chin said the investment in Goldman began when "a former employee met someone from Goldman at a conference and business cards were exchanged."
Kamehameha Activities invested $250 million in Goldman at the direction of former Bishop Estate trustee Matsuo Takabuki in 1992. In 1994 it invested another $250 million, giving the charitable trust a 10 percent interest and making it one of Goldman's largest limited partners behind Japan's Sumitomo Bank, at 12.6 percent.
Sumitomo, now known as Sumitomo Mitsui Banking Corp., also sold its remaining 8.67 million shares in Goldman yesterday.
The $93 price was a 2.9 percent discount to Goldman's closing price yesterday of $95.75. Today Goldman shares dropped $2.73 to $93.02.
