Chery Auto approves shareholding transfer through investment, share capital increase

Shanghai (Gasgoo)- Chinese state-owned automaker Chery Auto approved the resolution on the transfer of the company's shareholding on May 29, which was unanimously passed by the employees' representatives conference.

According to the resolution, Chery Auto intends to introduce new investors in the form of the cash injection of no less than RMB 2 billion. The investors could become the automaker's shareholders through adding investment and enlarging share capital.

After that, Chery Auto will carry out official negotiations with investors in terms of the investment and share capital increase.

Chery Auto has recently been involved in acquisition reports. The latest resolution may signify the beginning of the automaker’s mixed-ownership reform.

According to local media, Huatai Asset Management, a wholly-owned subsidiary of Huatai Securities, had acquired a 22.86% stake in Chery Holding on March 13 with an investment of around RMB 978 million, becoming the third-biggest shareholder of Chery Auto's parent company. Meanwhile, the registered capital of Chery Holding has increased to 4.2784 billion from 3.3 billion.

Some media reported on May 15 that Baoneng Group was planning to invest RMB 25 billion to RMB 27 billion to buy stakes in Chery Auto and become its biggest shareholder. Chery Auto claimed that such report was untrue by releasing a statement on the next day.