Yuejin Motor adds holding in SAIC Motor to 5.5%

The Shanghai State-owned Assets Supervision and Administration Commission approved Shanghai Automotive Industry Corporation (Group) to transfer 40.3066 million shares in SAIC Motor Corporation (SHSE: 600104) to Yuejin Motor (Group) Corp. free of charge.

Shanghai Automotive Industry Corporation and Yuejin Motor (Group) Corp. clinched such the share transfer agreement on April 28 last year.

SAIC Motor maintains its total capital stock at more than 6.55 billion shares upon completion of the deal. Shanghai Automotive Industry Corporation and Yuejin Motor (Group) Corp. hold over 5.13 billion shares and 360.31 million shares, accounting for 78.28 percent and 5.50 percent of the total capital stock separately.

The above two inked a letter of intent on cooperation on July 27, 2007, aiming to set up the largest auto company in China. Their partnership agreement said Shanghai Automotive Industry would take over the auto business of Yuejin Motor. SAIC Motor was to buy the complete vehicle and part assets of Yuejin Motor, and the latter was to own 320 million shares in former.

Yuejin Motor purchased the 320 million shares in December 2008 and the share transfer this time further raises its holding in SAIC Motor from 4.88 percent to 5.50 percent.