Shanghai July 16 (Gasgoo.com) With its buyout plan approved by shareholders of its Hong Kong-listed unit Denway Motors, Chinese automaker Guangzhou Automobile Group Co. is moving closer to a listing in Hong Kong, media reported today.
A majority of investors voted in favor of Guangzhou Auto buying Denway, Denway Chairman Zhang Fangyou said after a shareholders' meeting in Hong Kong today. Denway investors will receive shares in Guangzhou Auto under the buyout deal, Bloomberg reported.
Guangzhou Auto plans to start trading its shares on the Hong Kong stock exchange on August 30. The buyout and listing will offer access to Denway's factories in southern China and raise more funds to help Guangzhou Auto to become a top-3 player in China, the world's largest auto market.
On June 8, Guangzhou Auto said it would raise a bid for the other 62% of Denway shares. Denway holds 50% of Guangqi Honda, a venture with Honda Motor. The venture plans to introduce the Everus sedan, the first car made under its new Li Nian brand, in 2011.
Guangzhou Auto also makes Camry sedans and Highlander sport-utility vehicles in a partnership with Toyota Motor Corp., the world's largest automaker, in Guangzhou.
In the first half of this year, Guangzhou Auto sold 348,700 vehicles, ranking 6th in Chinese automakers. The company aims to produce over one million vehicles this year, from 606,600 in 2009.
