Shanghai, May 19 (Gasgoo.com) China's sixth-largest automaker Guangzhou Automobile Group Co. (GAC), said today that it hopes to be listed in Hong Kong by the end of July, a move the company is preparing by privatizing its HK-listed unit Denway Motors (0203.HK), Reuters reported.
"The listing will greatly lift the company's ability to raise funds in international markets," said executive director Lu Sa about the listing plan, adding that the listing of Guangzhou Auto will allow investors to participate in the growth of the group.
The company plans to take Denway private by offering its own shares to Denway shareholders at a premium of up to 22% to their last closing price, based on its own valuation of its shares. Guangzhou Auto currently holds 37.9% of Denway.
Guangzhou Auto's listing plan in Hong Kong through Denway will allow the company to simplify its structure for investors by taking its listed Denway unit, and replacing it with shares of the parent company, a Reuters report said.
Growth-hungry Guangzhou Auto started impressive business expansion last year by acquiring Changfeng Motor and forming a joint venture with Fiat SpA. The expansion has urged the company to seek listing for fund support.
