China’s Geely Automobile Holdings has offered up US$243m in convertible bonds and warrants due in 2014 to GS Capital VI Fund, an affiliate of Goldman Sachs.

Sidley Austin’s Hong Kong-based partner Constance Choy advised Geely on this transaction. Choy also previously advised Geely on its acquisition of majority stakes in five jointly held automakers controlled by its parent, Geely Group.

Fangda and Slaughter and May’s Hong Kong-based partner Neil Hyman represented GS Capital in its subscription.

Based in Hangzhou, Geely is China’s 10th largest vehicle maker and has plans to double its car-making capacity in the next few years. The parent company is expected to make a bid for Ford’s Volvo unit.

If Geely does secure the purchase, the company is expected to further inject as much as US$10bn on top of the purchase price into the brand development, including a new production line in Guangdong where the first Volvo under Geely stewardship will be made.

China has the world’s largest auto market, which has been further boosted by policy initiatives including tax cuts and subsidies.

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