Shanghai, April 9 (Gasgoo.com) SAIC Motor Corp said on Thursday that the joint venture company with General Motors Co. has completed share right restructuring and SAIC Motor Corp will be the holding stockholder.
SAIC Motor Corp has acquired an additional 1% stake from Shanghai GM with the price of $84.5 million (not included interest ) to boost its total stake in Shanghai GM to 51%.
General Motors Co. announced last December that it would plan to transfer its right of share control to SAIC Motor Corp.
It is necessary for SAIC Motor Corp to restructure the share right in order to combine the profit from the joint venture company into its income statement. Because according to China’s law, it is not allowed to combine the financial statement if only holds half of the share.
