Changhe Auto to make aircraft lighting products

Shanghai, June 5 (Gasgoo.com) The China Securities Regulatory Commission has approved of the restructuring plan of Jiangxi Changhe Auto (SHSE: 600372). Over the next 12 months, The company will sell out its auto-making assets for aircraft electronics business, Beijing Times said today. 

Changhe Auto's controller Aviation Industry Corporation of China (AVIC), China's largest aviation group, will replace the Shanghai-listed company's auto assets, liabilities, and all additional shares with the 100% holdings of Shanghai Aviation Electric Co., Ltd. and AVIC Lanzhou Wanli Aviation Electromechanic Inc, according to the plan.

After the restructuring, Changhe Auto will become an investment holdings company mainly engaged in manufacture of aircraft lighting and controlling system products, compared to autos and engines presently, in a bid to reverse the company's money-losing operations.

Due to its business losses in the past three consecutive years, Changhe Auto's share trading in the Shanghai Stock Exchange (SSE) has been suspended since May 11. The trading is expected to resume when the company issues its 2009 financial report.

Changhe Auto has been an auto-making affiliate to AVIC. In the reshuffle, Changhe's assets are valued far below the assets it will acquire, and therefore it has to issue 74,625,174 shares, each at 5.18 yuan, to AVIC for making up the difference.