Shanghai, January 22 (Gasgoo.com) Guangzhou Automobile Group, a Chinese partner of Honda Motor and Toyota Motor, is planning a back-door listing in Hong Kong through its Denway Motors (0203.HK) unit, Reuters reported today.
Guangzhou Auto, owning about 37.9% of Denway, would seek to list H-shares in Hong Kong by way of introduction, without offering shares for public subscription, Denway said in a statement to the Hong Kong Stock Exchange.
As part of the back-door listing, Denway would be privatized, with its shares exchanged for new shares of Guangzhou Auto which may or may not be at a premium to Denway's current trading price, Denway said.
The move is seen as part of a restructuring plan for the auto group in southern China to consolidate its assets. That would pave the way for future development in a bid to tap the growing Chinese auto market.
By September, Guangzhou Auto had invested 1 billion yuan ($147 mln) to take over 29% stake of SUV-maker Changfeng Motor in Hunan province and in November signed an agreement with Fiat to set up a 5-bln-yuan joint venture in Hunan.
Guangzhou Auto sold 638,000 vehicles last year and aims to sell 727,500 units this year.
