SAIC to put $1.3 bln auto-parts assets into Bashi

SHANGHAI, June 23 (Reuters) - SAIC group, China's biggest auto conglomerate, is to inject 8.8 billion yuan ($1.28 billion) of auto parts assets into Shanghai Bashi Industrial (Group) Co, becoming its parent under a previously announced asset-for-equity deal.

Meanwhile, Bashi, a struggling bus service provider in Shanghai, will shed about 2.2 billion yuan of public transport assets, Bashi said in a stock exchange statement on Monday.

The planned injection of SAIC's auto parts assets, a business growing more than 30 percent a year, would almost double Bashi's profit and boost its net assets by 59 percent.

Bashi first announced on June 2 that it would divest its public tranport assets and become a listing vehicle for SAIC. Its shares have been suspended since May 16 pending announcement of the transaction details.

The restructuring would transform Bashi from a public transport company into a competitive blue-chip auto parts maker, Bashi said in the statement.

Bashi will sell 1.15 billion shares at 7.67 yuan apiece to SAIC, and use the proceeds to buy SAIC's auto parts assets. Meanwhile, Bashi will sell its transportation assets to its existing parent Jiushi, whose holdings in Bashi will also be transferred to SAIC for free.

SAIC, which owns joint ventures with General Motors and Volkswagen AG and controls SAIC Motor Corp, will eventually own 60 percent of Bashi and become its parent. ($1=6.88 yuan)