Shanghai, September 11 (Gasgoo.com) AviChina Industry & Technology Co announced on Wednesday that it has gained the approval from the State-owned Assets Supervision and Administration Commission to sell 100% stakes of Harbin Hafei Automobile Group to AVIC Automobile Industry Co, the China Securities Journal reports.
AVIC Automobile Industry Co is the auto subsidiary of China Aviation Industry Corporation (AVIC). If the deal is completed, the Hong Kong-listed company will spin off all troubled complete vehicle operations.
AviChina has already completed the spin-off of its ailing complete vehicle arm Jiangxi Changhe Auto Co, which helped the Hong Kong-listed company improve its first-half financial results.
From January to June 2009, AviChina, engaged in aviation and auto businesses, reaped business revenue of 8.996 billion yuan ($1.3 bn), up 8.78% from a year earlier. Its listed arms include Jiangxi Hongdu Aviation Industry Co, Hafei Aviation Industry Co and Harbin Dong'an Auto Engine Co.
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