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BAIC becomes Foton's biggest shareholder
Shanghai, October 23, (Gasgoo.com)-Beijing Automotive Industry Holding Co. Ltd. (BAIC) will become the biggest stockholder of Beiqi Foton Motor Co., China's largest light commercial vehicle maker.
Assets of Beiqi Foton, which was originally held by Beijing Automotive-Motorcycle Co will be transferred to the parent company—BAIC under government directives, the company announced last Friday.
As both parties agreed, BAIC's shareholding in Beiqi Foton will be lifted to 35.94 percent from 3.94 percent, hence becoming the largest shareholder in Beiqi Foton. The agreement is still subject to approval from Chinese authorities.
Beiqi Foton, Beijing Hyundai and Being-Benz are all daughter companies owned by BAIC, which also controls several automotive parts plants.
"We are definitely planning a public listing," Xu Heyi, chairman of BAIC told the local media earlier, but he declined to give a timetable, citing structuring difficulties.
Industry analysts say that BAIC may seek a back-door listing after becoming the largest shareholder of Beiqi Foton, which has already been listed in Shanghai Stock Exchange.
Last month, Beiqi Foton’s joint venture project with US-based engine manufacturer Cummins Inc. was approved by the Chinese government. The two companies will jointly invest 2.7 billion Yuan ($358.89 million) in a new engine plant.
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