Shanghai Automobile: Investment expanding expedited

Shanghai Automobile Co.,Ltd announced that the proposal of acquiring Shanghai Auto Works(SAW) was passed by the board recently.
According to the announcement, SAW will be mergered into Shanghai Automobile Co.,Ltd as branch of parent company and logout its Corporation status. Shanghai Automobile Passenger Vehicle Company will be used as temporary name. Meanwhile, SAW Yizheng branch will become the branch of Shanghai Automobile Passenger Vehicle Co.,Ltd.

Shanghai Automobile is going to invest 1.8 billion yuan(about 230.7 million dollars) to its research institute to strengthen the capability of research and development. To improve the capability of running overseas branches, Shanghai Automobile planned to register “ Shanghai Automobile Britain Holding Company(temporary name) with registration capital 5 million pounds as the platform for European businesses and will acquire Ricardo 2010 Company, registered by Ricardo Company as overseas research institute, with 1 pound, with its corporation status maintained.

Moreover, Shanghai Automobile is planning to acquire 50% shares of Iveco Commercial Vehicle Investment Company of Shanghai Automobile. Presently Shanghai Automobile injected 29,3741 million yuan(3,77 million dollars) into Iveco accounting for 15% of total 25 million dollars, through which Shanghai Automobile hoped to make up commercial vehicle part on its blueprint.

Shanghai Automobile also planned to acquire Shanghai Shenlian Special Vehicle Company and increase its registration capital from 12 million yuan(about 1.54 million dollars)to 30 million yuan(about 3.85 million dollars).