Corun’s plan to acquire 36.97% stake in Geely-backed CHS conditionally approved by CSRC

Shanghai (Gasgoo)- Chinese hybrid power system supplier Hunan Corun New Energy Co.,Ltd (Corun)'s plan to acquire 36.97% stake in ChinaHybrid System Co., Ltd (CHS Company) has been conditionally approved by the China Securities Regulatory Commission (CSRC), Corun announced on January 23.

The authoritative approval suggests a high probability that Geely will become Corun's shareholder controlling over 5% equity.

In last December, Corun announced that it plans to acquire 36.97% stake in CHS Company jointly held by Zhejiang Geely Holding Group (Geely Holding) and Shanghai Maple Automobile (Shanghai Maple), a subsidiary of Geely Holding, by issuing a total of 184 million shares at RMB4.47 per share. The value of consideration is at RMB821 million.

Of that, 49.1499 million shares will be issued to Geely Holding with a consideration valued at RMB220 million and 134 million shares will be distributed to Shanghai Maple with a consideration value of RMB601 million.

Geely Holding and Shanghai Maple hold 9.90% and 27.07% stake respectively in CHS Company. Once the transaction completes, Geely will control 11.10% stake in Corun—2.97% stake is directly obtained by Geely Holding itself and the other 8.13% stake belongs to its subsidiary Shanghai Maple.

It is reported that CHS Company is specializing in R&D, manufacturing and marketing of hybrid powertrain platform and systematic solutions.