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SAIC pays US$5m for ally's IPO stake
By Pan Xiaoyi |
November 19, 2010, Friday
|
Print Edition
Print Edition
SAIC Motor Corp has agreed to pay US$5 million for a 0.97 percent stake in General Motors' initial public offering.
SAIC Motor HK Investment Ltd, a wholly owned subsidiary of SAIC, will buy 15.15 million shares at US$33 a piece, with the funds to be raised in Hong Kong, the Shanghai-based auto maker said in a statement yesterday.
"The investment reflects our confidence in GM's development prospects," the statement said, pointing out that GM has continued to report quarterly profits this year after emerging from bankruptcy in July 2009.
Detroit-based GM, which has partnered SAIC since 1997, last week reported net earnings of US$4.77 billion in the first nine months of this year and is on track for its first profitable year since 2004.
"In addition, the US auto market is recovering steadily while robust demand from emerging markets will offer further development potential for GM," SAIC said.
"We are happy with SAIC's decision to participate in GM's public offering," Tim Lee, president of GM International Operations, said in a statement.
The two companies have already tied up to expand globally by setting up a 50-50 joint venture in India to produce and sell Wuling minivans there as they take the first step to explore emerging markets.
"The deepening cooperation will help SAIC to gain more resources in exploring overseas markets and enhancing research and development capabilities," the SAIC statement said.
The two partners set up a joint venture to sell Buick, Cadillac and Chevrolet vehicles 14 years ago.
SAIC Motor HK Investment Ltd, a wholly owned subsidiary of SAIC, will buy 15.15 million shares at US$33 a piece, with the funds to be raised in Hong Kong, the Shanghai-based auto maker said in a statement yesterday.
"The investment reflects our confidence in GM's development prospects," the statement said, pointing out that GM has continued to report quarterly profits this year after emerging from bankruptcy in July 2009.
Detroit-based GM, which has partnered SAIC since 1997, last week reported net earnings of US$4.77 billion in the first nine months of this year and is on track for its first profitable year since 2004.
"In addition, the US auto market is recovering steadily while robust demand from emerging markets will offer further development potential for GM," SAIC said.
"We are happy with SAIC's decision to participate in GM's public offering," Tim Lee, president of GM International Operations, said in a statement.
The two companies have already tied up to expand globally by setting up a 50-50 joint venture in India to produce and sell Wuling minivans there as they take the first step to explore emerging markets.
"The deepening cooperation will help SAIC to gain more resources in exploring overseas markets and enhancing research and development capabilities," the SAIC statement said.
The two partners set up a joint venture to sell Buick, Cadillac and Chevrolet vehicles 14 years ago.
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