SAIC Motor plans to shift stake to parent
(Shenzhen Daily)Updated: 2007-03-14 15:59
SAIC Motor Corp, China's largest carmaker, plans to transfer its
holdings in a listed unit, Shanghai Automotive Co, to its State-run parent to
simplify the shareholding structure, Shanghai Automotive said over the weekend.
In December 2006, SAIC Motor completed a US$2.4 billion deal injecting its core assets into Shanghai Auto and increasing its stake in the unit to 83.83 percent from 67.66 percent.
In a statement issued Saturday, Shanghai Auto said SAIC Motor had gained approval from the Shanghai Municipal Government to transfer its entire Shanghai Auto holding to Shanghai Automotive Industry Group, which is owned by the city government of Shanghai and which owns 100 percent of SAIC Motor.
The move, still pending approval from the country's securities regulator, is in line with the group's development strategy and would help to simplify the corporate structure, Shanghai Auto said.
Shanghai Auto operates vehicle manufacturing tie-ups with General Motors Corp. and Volkswagen AG, holding a 50 percent stake in each venture.
Several State-owned companies are consolidating their production facilities and other key assets within listed entities to improve transparency and make it easier to raise funds from financial markets.
(For more biz stories, please visit Industry Updates)
| ||