FAW Huali's potential buyer has emerged

Shanghai, April 1 (Gasgoo.com) FAW Huali (Tianjin) Motor Co. is reported to be bought by another FAW subsidiary -- FAW Tianjin Xiali Automobile, leaving other pursuers almost out of the competitions, Chinese newspaper Economic Observer reported on Monday.

The newspaper cited an unnamed Xiali official as saying that Huali has already chosen Xiali as its prospective buyer, and now the two sides are just waiting for goving through the legal formalities of the takeover.

FAW announced on March 21 that it would sell 100% stakes of its subsidiary FAW Huali for RMB 300,000 ($42,461) at Tianjin Property Exchange Center on April 15.
 
The report said the total assets of FAW Huali were evaluated at RMB 789 million, while net assets totaled RMB 242,500. Last year company lost RMB 131 million.
 
The seller says buyers must meet two prerequisites: First, the buyer must be a domestic OEM automaker with a registered capital of no less than RMB1.6 billion and the buyer must be able to turn FAW Huali into a 150,000-sedan maker; secondly, the buyer will be responsible for all FAW Huali liabilities.
 
FAW Huali was established in June 2002 and has a capacity of 180,000 vehicles annually. Its main products include Toyota Vela, Daihatsu Terios and minivans and some own brand electric passenger cars. The automaker had been losing money for years before its production was halted one year earlier.