BAIC to sign acquisition deal with ST Baolong Auto tomorrow

Shanghai August 17 (Gasgoo.com) Beijing Automotive Industry Holdings Co (BAIC) is expected to launch a buyout tomorrow in Guangdong's capital city Guangzhou for ST Baolong Auto (600988.SH) as part of an ongoing plan to list itself on the Shanghai exchange, media reported Tuesday.

Both ST Baolong Auto and BAIC have not responded to the news yet.

BAIC, the country's fifth-biggest carmaker, will make a detailed announcement about the plan in the next few days, the China Business News reported, citing unnamed sources from BAIC.

BAIC plans to group together its passenger vehicle businesses this year before floating the unit, its President Wang Dazong said in a Reuters interview in May.

ST Baolong Auto, formerly known as Guangzhou Oriental Baolong Automotive Industry Co., Ltd., is principally engaged in manufacture and supply of specialty automobiles as well as bulletproof cars.

As the first listed private enterprise in Guangzhou, ST Baolong Auto has fallen into losses after failing to open up the passenger car market at the end of 2004.

Since then, ST Baolong Auto tried several times to collaborate with Faw-Hongta and Xiamen Golden Dragon to cast off a successive deficit of years, but all failed.