Gasgoo Munich- GAC Group disclosed a restructuring proposal on September 28 to acquire a 50% stake in FAW Toyota Motor Co., Ltd. through a share issuance. The automaker also plans to issue shares to no more than 35 eligible investors to raise supporting funds.
Key Takeaways
·GAC Group suspended trading in its shares on September 14 in connection with the proposed restructuring and resumed trading on September 29.
·If completed, the transaction would give GAC Group a 50% interest in FAW Toyota alongside its existing GAC Toyota business. The proposed combination is intended to support coordination across production, supply chains and sales channels.
·Separately, GAC Group's controlling shareholder, Guangzhou Automobile Industry Group, has signed a strategic cooperation framework agreement with China FAW. The parent-level partnership is proceeding alongside the listed company's restructuring proposal.
Image source: GAC Group
Parent-level strategic cooperation
China FAW Group Co., Ltd. and Guangzhou Automobile Industry Group Co., Ltd. signed the strategic cooperation framework agreement on September 29. The companies described the agreement as a strategic arrangement reflecting market trends and their respective development needs.
Partnership scope
According to their joint statement, the partnership will combine asset and capital cooperation with technology development and cross-regional coordination of industrial resources, with the aim of improving operating quality and efficiency.
The companies said they would proceed with implementing the cooperation agreement.
