Dongfeng, Nissan joint venture DFL said to transfer control right of light truck subsidiary

Beijing (Gasgoo)- Dongfeng Motor Company Limited (DFL) is planning a share transfer process , according to an announcement from DFL’s light truck subsidiary Dongfeng Automobile Company (DFAC) on May 25th. The transfer may bring changes to DFAC's controlling shareholder.

Photo credit: DFAC

DFAC explained that due to the substantial uncertainty posed by the undone share transfer proceedings, as a public traded company, DFAC has filed for a temporary trading suspension to the Shanghai Stock Exchange, on May 25th and May 26th so far.

Notably, according to a local media outlet, DFL is in fact discussing with Dongfeng Motor Group (DFMG) to transfer its equity in DFAC to the latter. Upon completion of the transaction, the controlling shareholder of DFAC will be changed to DFMG and directly managed by DFMG.

“The corresponding personnel adjustments are already in place, with more changes coming,” a source close to the matter disclosed.

DFL and DFMG have yet to respond to the matter.

DFL is a 50/50 joint venture founded by DFMG and Nissan Motor in 2003. The joint venture holds a slew of subsidiaries including DFAC, Dongfeng Motor Parts and Components, and others. DFL accounts for 60% of DFAC’s shares, meaning that DFMG and Nissan Motor hold 30% of DFAC’s shares indirectly.