Denway's delisting gets note of approval
By Jin Jing |
July 17, 2010, Saturday
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Print Edition
Print Edition
GUANGZHOU Automobile Group Co's proposed privatization of Hong Kong affiliate Denway Motor Corp has been approved by Denway's shareholders, which signaled that its listing plan for future expansion was moving forward, the Chinese car maker said yesterday.
The approval came after Guangzhou Auto, which holds 37.9 percent of Denway, on June 8 raised its offer to swap one new share for 0.47 share in Denway Motor, up from the previous 0.37 in a bid to make the deal more attractive to individual investors.
Buying out Denway will allow Guangzhou Auto, the Chinese partner of Toyota Motor Corp and Honda Motor Corp, to list on the Hong Kong stock exchange on August 30 after Denway is delisted from the market on August 25.
Zhang Fangyou, chairman of Guangzhou Auto, said facilitating the car maker's mergers and acquisitions would maintain its strategy for a steady growth in the future. The car maker will list on the mainland stock market when the time is right, its spokesman said.
Some industry analysts said Guangzhou Auto has to raise funds after listing as it needs around 6.8 billion yuan to develop its own-band vehicles and to double capacity to 2 million units by 2015.
Meanwhile, shareholders of SAIC Motor Corp, China's largest auto group, yesterday also approved a share replacement plan to raise up to 10 billion yuan (US$1.47 billion) which will be used to accelerate developing its own-brand vehicles and new-energy cars.
The FAW Group Co, another Chinese auto maker, plans a group listing by setting up a new holding company.
The approval came after Guangzhou Auto, which holds 37.9 percent of Denway, on June 8 raised its offer to swap one new share for 0.47 share in Denway Motor, up from the previous 0.37 in a bid to make the deal more attractive to individual investors.
Buying out Denway will allow Guangzhou Auto, the Chinese partner of Toyota Motor Corp and Honda Motor Corp, to list on the Hong Kong stock exchange on August 30 after Denway is delisted from the market on August 25.
Zhang Fangyou, chairman of Guangzhou Auto, said facilitating the car maker's mergers and acquisitions would maintain its strategy for a steady growth in the future. The car maker will list on the mainland stock market when the time is right, its spokesman said.
Some industry analysts said Guangzhou Auto has to raise funds after listing as it needs around 6.8 billion yuan to develop its own-band vehicles and to double capacity to 2 million units by 2015.
Meanwhile, shareholders of SAIC Motor Corp, China's largest auto group, yesterday also approved a share replacement plan to raise up to 10 billion yuan (US$1.47 billion) which will be used to accelerate developing its own-brand vehicles and new-energy cars.
The FAW Group Co, another Chinese auto maker, plans a group listing by setting up a new holding company.
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