Gasgoo.com (Shanghai February 10) - Guangzhou Automobile Group (GAC Group) announced that it has gained official written confirmation of the China Securities Regulatory Commission's approval of its request to acquire GAC Changfeng, Economic Observer News reported today. This news verifies that GAC Group plan to list A-shares for all of its properties is proceeding according to schedule.
Upon being informed of the news, Hunan-based GAC Changfeng has also taken action. After gaining approval from the provincial Department of Commerce, Changfeng issued a public announcement, as well as offering its current shareholders the option to trade stocks for cash.
Changfeng's other two major shareholders, GAC Changfeng Stock Rights (who owns 14.59% of the manufacturer) and Mitsubishi Motor (who owns 21.98%), chose to trade their shares in for cash last year.
Gaining the CSRC's approval was GAC Group's last major hurdle. According to some analysts, the company reorganization should be completed within just six months, shortly after which GAC Group will be able to start listing A-shares as planned.