SAIC Motor woos overseas investors

SAIC Motor Corp., Ltd. is looking for new strategic partners for affiliated Shanghai Haitong International Automotive Terminal Co., Ltd.

The listed arm of Shanghai Automotive Industry Corporation (Group) (SAIC) recently put up a 5% stake in the target company for auction on the Shanghai United Assets and Equity Exchange (SUAEE). The listing price was CNY 39.0329 million.

SAIC Motor totally has a 40% stake in the auto terminal operator. It requires that the new strategic partners must be overseas bellwethers in the automotive industry.

A person in the know reveals that other shareholders of the auto terminal operator will sell some stake they hold later. It is also likely that existing shareholders will buy more shares in the company.

The Haitong International Automotive Terminal is situated in the Shanghai Waigaoqiao Port Area, covering a Phase I onshore area of 26.5 hectares. Its special storage yard is capable of accomodating 7,000 cars, and the terminal berth extends to 219.4 meters, with an apron depth of 12.5 meters, suitable for different ro-ro ships.

Ended December 31, 2007, the total assets of Shanghai Haitong International Automotive Terminal Co. amounted to CNY 780.658 million.

Huang Ying, contact person of entrusted institutions, releases that SAIC Motor wants to invite overseas strategic investors through the equity sales.

Currently, foreign shareholders take a 20% stake in the target company, while auto joint ventures are unable to enjoy preferential policies unless the stake proportion hits 25%.

Shanghai Haitong International Automotive Terminal Co., actually only has one foreign shareholder, namely, Nippon Yusen Kabushiki Kaisha. Other four shareholders are associated companies. Shanghai Automotive Industry (Hong Kong) Co., Ltd., and Shanghai Container Terminal (Macao) Co., Ltd. are respectively affiliated to Shanghai Automotive Industry Sales Corporation, and Shanghai International Port (Group) Co., Ltd.

Through a string of acquisitions, SAIC Motor now has three proprietary brands: Ssang Yong, MG, and medium- and high-grade sedan nameplate Roewe.

So far, Roewe's reputation rate has reached 70.9%, becoming one of the most popular trademarks around China, according to latest survey by marketing information provider ACNielsen.

China's auto brand satisfaction investigation for 2007, reputed as the Chinese version of J.D. Power, showed that Roewe was the first and sole proprietary nameplate ranking among the top ten.

In a bid to promote 30 new car models before 2010, SAIC Motor decides to input additional CNY 8.388 billion in proprietary-branded complete car manufacture, disclosed SAIC Board Chairman Hu Maoyuan.

(USD 1 = CNY 6.84)