JAC denies "tie-up" with Blackstone

Shanghai. September 20 (Gasgoo.com) - Anhui Jianghuai Automobile Co Ltd (JAC) denied an earlier report that Blackstone Group, a New York-based private equity firm, may invest in JAC.

"We did have talks with Blackstone top level executives late August and they were escorted by officials from the State Assets Supervision and Administration Commission. But we are not the only company that Blackstone has visited during their China trip," said Wang Min, secretary of board of directors of JAC.

On August 21, Stephen A Schwarzman, Blackstone president and CEO and Antony Leung, Blackstone's Greater China Chairman visited JAC and had talks with JAC vice president Gong Renhe,

Schwarzman and his team have also toured JAC's passenger vehicles and sedan production bases and heavy truck production facilities.

Shanghai Securities News reported yesterday that Blackstone may be interested in investing JAC.

JAC’s first-half report showed earnings fell 19.7 percent despite an increase in total revenue. The firm used to specialize in making commercial vehcles, but now it is expanding to passenger vehicle business.

Early this month, Blackstone  bought 20 percent stake from China National BlueStar (Group) Corp by paying US$600 million. Blackstone is becoming increasingly interested in the automotive sector since its unsuccessful bidding for Chrysler, the third largest American automaker.

Up to now, it owns 56 percent of TRW Automotive Holdings Inc., which listed  in 2004. It also bought control of Detroit-based auto supplier American Axle & Manufacturing Holdings Inc. in 1997 and later sold its shares in public offerings.