Auto: Automakers have listing bug
(Shanghai Daily)
Updated: 2006-08-30 15:15
The listing bug that gripped the information technology industry about five
years ago seems to have hit China's auto industry now.
Shanghai Automotive Co Ltd said it plans to issue 3.27 billion A shares at
5.82 yuan (72 US cents) each to its parent, Shanghai Automotive Industrial Corp,
to fund the purchase of SAIC's 20 billion yuan worth of core assets. On
completion of the deal, SAIC would raise its stake in Shanghai Auto from 67
percent to 83 percent.
Auto analysts said the listing move signaled SAIC's aggressiveness to seek a
back-door listing while it also indicated Shanghai Auto's plan to boost its
competitiveness.
(For more biz stories, please visit Industry Updates)
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