Guangzhou Auto mulls delisting Denway
Guangzhou Automotive Industry Corp is considering delisting its red-chip unit Denway Motors<203> through a share buyback after it launches a dual IPO in Hong Kong and Shanghai by early November, according to a report.
The buyback is in line with Guangzhou municipal government’s call for consolidating the auto industry. Guangzhou Auto has 37.9% interest in the subsidiary, which is a joint venture partner of Hongda Motor.
Guangzhou Automotive intends to sell shares in the domestic A-share market by the end of October and then H-shares in Hong Kong in early November, hoping to raise up to US$1 billion in the dual listing, the report added.
Guangzhou Automotive Industry Corp is also reportedly considering the probability of acquiring Volvo car business, which was bought by Ford Motor at price of US$6.45 billion in 1999.
The acquisition is possible only after IPOs by the automaker in Hong Kong and Shanghai.
Last month, it was reported domestic car producer Chery Auto was considering buying Volvo’s car assets.
Guangzhou Automotive said in July that it was investing RMB 6.8 billion (US$993.8 million) to establish a production base that would begin assembling its first car under its own brand by 2010.
Tags: Auto, Chery, Ford, Guangzhou