Gasgoo (Shanghai)-Recently, FAW Xiali applied for continuing trade suspension and released an announcement that “FAW Holding Co. plans to reduce part of holding shares by public transfer, and thereafter the company’s holding shareholder will change.” It can be concluded from the announcement that the listed company FAW Xiali will be abandoned by FAW Holding Co. and FAW Car is the only option for FAW Group’s overall listing.
It is rumored that Dong Mingzhu’s Gree team contacted with FAW Xiali recently and Xiali would be incorporated into Besturn, another automotive marque of FAW. In the meanwhile, the horizontal competition problem between FAW Car and FAW Xiali needs Xu Liuping, chairman of FAW Group, to make a choice between the two companies. FAW Holding holds 53.03% controlling shares of FAW Car, making it advantageous to choose FAW Car. Besides, Xu Liuping plans to incorporate Xiali into Besturn in strategy, focusing to make the FAW Besturn.
Gree has denied contacting with FAW Xiali; it is quite possible that Dong Mingzhu’s personal team or Zhuhai Yinlong made contacts with FAW Xiali.