China’s UCAR to provide guarantee over shareholder loan offered by Foton Motor to Borgward

Shanghai (Gasgoo)- Beiqi Foton Motor Co., Ltd. (Foton Motor) said on December 28 that it has found a transferee who is willing to take over 67% stake in Beijing Borgward Automobile Co., Ltd (Beijing Borgward) for a value of RMB3.973 billion.

By the way, the transferee should provide a legitimate and valid guarantee agreed by Foton Motor over the RMB4.271 billion worth of shareholder loan offered by Foton Motor to Beijing Borgward.

On the same day, UCAR Group, who offers chauffeured car services in China through both web-based and mobile platforms, also released an announcement saying it plans to provide a guarantee with a value of no more than RMB2.4 billion over the shareholder loan mentioned above to assist the transferee with the acquisition of Beijing Borgward’s 67% stake.

Meanwhile, Beijing Borgward and UCAR Group struck a strategic cooperation deal to jointly explore new automobile retail modes. Under the agreement, a working group was jointly formed by both parties at the same time with Zhang Zhigang, CEO of UCAR Group’s advanced O2O automobile e-commerce platform dubbed Shenzhou Maimaiche, as its director.

Foton Motor also announced a series of executive changes on December 28. Out of that, Bruno Lambert, former President Magna Steyr Asia, is appointed as president of Borgward. Besides, Yang Song will be transferred to Foton Motor as vice president from president of Borgward.