Guangzhou Auto expected to list in HK later this year

Shanghai, May 12 (Gasgoo.com) Yesterday, top executives from Guangzhou Automotive Group Co. denied the rumor that the requirement for its owned subsidiary Denway Motors' going public was halted, adding that the whole listing plan is still on track.

The Shanghai Securities News has learned that, at present, Guangzhou Auto is discussing with the other shareholders of Denway about the exchange price, and says it will list in Hong Kong in the second quarter this year, if the price is reasonable.

Denway also held a shareholders meeting yesterday. General Manager of Guangzhou Auto and Vice Chairman of the Board of Denway, Zeng Qinghong said that Guangzhou Auto's HK listing Hearing is still in progress, and the overall plan will go ahead on schedule.

On January 19 this year, the Group has submitted an application to list on the Hong Kong stock exchange and Guangzhou Auto will be listed in Hong Kong in the form of H shares that is to take Denway private through a share swap after the listing and to achieve an overall listing of the entire Group finally. Guangzhou Auto holds 37.9% of Denway's shares, Zeng added.

The main factors affecting Guangzhou Auto's listing are from its joint ventures with Honda and Toyota respectively, which means the Group has to get the two's approval on the matter. However, it is already not a problem. As said, the only problem for now is the exchange price of Denway. Zeng Qinghong said, if the price is too high, they will reconsider the listing, but said both sides will endeavor to create a win-win situation and consider convertible listing.

Denway's profits mainly come from Guangzhou Honda that holds 50% stake in Denway and once the Guangzhou Hondon's growth slows down; Debway's pricing problem will be solved. Yao Yiming, Executive Director of Denway and Executive Vice President of Guangzhou Honda, said that in the first four months this year, China auto sales increased 60%-70%, with Guangzhou Honda only accounting for 30%, fell by 10% month on month, analysts said.