GAC Group transfers stake in Greater Bay Technology for around 1.3 billion yuan

Shanghai (Gasgoo)- On December 30, 2024, GAC Group announced that the company has reached an agreement with its controlling shareholder, Guangzhou Automobile Industry Group Co., Ltd. (GAC Industry), to sell an 18.82% stake in Guangzhou Greater Bay Technology Co., Ltd. (GBT) with a total transaction value of approximately 1.331 billion yuan.

Photo credit: GAC Group

According to its previous announcement, GAC Group would transfer its 15.82% stake in GBT to GAC Industry for approximately 1.118 billion yuan. Additionally, GAC Capital, a wholly-owned subsidiary of GAC Group, would transfer its 3% stake in GBT to GAC Industry for approximately 212 million yuan.

Upon completion of the transaction, GAC Group will no longer hold a direct equity stake in GBT but will indirectly retain a 15.6% stake through GAC Capital. In accordance with the agreement, GAC Capital will no longer have the right to nominate board or management for GBT and will cease to exercise significant influence over the company. According to equity method of accounting, the remaining equity held through GAC Capital will be classified as a financial asset and measured at fair value.

Founded in September 2020, GBT is GAC Group's first internally incubated high-tech enterprise under a mixed-ownership structure. The company focuses on the R&D, production, sales, and services of XFC (eXtreme Fast Charging) power batteries, a new-generation energy storage device, and its systems.