Car maker to privatize HK-listed Denway
By Jin Jing |
May 20, 2010, Thursday
|
Print Edition
Print Edition
CHINA'S Guangzhou Automobile Group Co yesterday agreed to buy out its Hong Kong-listed unit, Denway Motors, for US$3.3 billion that will pave the way for its own listing to fund future expansion.
The nation's sixth-biggest auto group, which holds 37.9 percent of Denway, offered 0.37861 of its new shares for each Denway share to privatize the unit, according to its statement yesterday.
The move will allow Guangzhou Auto to trade its own shares by end of June.
Guangzhou Auto values Denway at HK$5.49 (70 US cents) per share, which is 20 percent higher than Denway's closing price on April 28 before it suspended trading.
However, Denway lost 24 percent to HK$3.41 yesterday as analysts believed investors expected a higher premium for the swap ratio.
Zhang Fangyou, chairman of Guangzhou Auto, said the share swap price was reasonable and rational and shareholders would support the deal.
Guangzhou Auto, the Chinese partner of Toyota and Honda Motor Corp, submitted the listing application to Hong Kong's stock regulator on January 19. Industry analysts said Guangzhou Auto needs funds to meet its aggressive plan and the robust auto sales in China would make the car maker appealing to investors.
By end of 2010, Guangzhou Auto expects to have an annual output capacity of more than 1 million vehicles, its statement said. It aims to boost sales to 2 million cars by 2015, on par with SAIC Motor Corp and FAW Group Co.
The nation's sixth-biggest auto group, which holds 37.9 percent of Denway, offered 0.37861 of its new shares for each Denway share to privatize the unit, according to its statement yesterday.
The move will allow Guangzhou Auto to trade its own shares by end of June.
Guangzhou Auto values Denway at HK$5.49 (70 US cents) per share, which is 20 percent higher than Denway's closing price on April 28 before it suspended trading.
However, Denway lost 24 percent to HK$3.41 yesterday as analysts believed investors expected a higher premium for the swap ratio.
Zhang Fangyou, chairman of Guangzhou Auto, said the share swap price was reasonable and rational and shareholders would support the deal.
Guangzhou Auto, the Chinese partner of Toyota and Honda Motor Corp, submitted the listing application to Hong Kong's stock regulator on January 19. Industry analysts said Guangzhou Auto needs funds to meet its aggressive plan and the robust auto sales in China would make the car maker appealing to investors.
By end of 2010, Guangzhou Auto expects to have an annual output capacity of more than 1 million vehicles, its statement said. It aims to boost sales to 2 million cars by 2015, on par with SAIC Motor Corp and FAW Group Co.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
