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
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
