GAC Group to support GAC Hino in NEV transition through equity adjustment

Shanghai (Gasgoo)- On Jan. 24, GAC Group announced strategic measures for the sake of the rapid growth of the new energy vehicle (NEV) sector. The move aims to facilitate the transformation of GAC Hino Motors towards new energy commercial vehicles. Following unanimous agreement among shareholders, a proposed equity adjustment for GAC Hino is set to take place.

700 Zhizhen tractor; photo credit: GAC Hino

To steer the strategic transformation, GAC Group, in conjunction with Guangzhou Qingyun New Energy Technology Investment Partnership Enterprise (Limited Partnership), plans to acquire 39.72% and 5.45% equity stakes in GAC Hino, respectively, from Hino Motors. The transaction amounts to 29.69 million yuan and 4.07 million yuan for the two entities.

Upon completion of the equity adjustment, GAC Group, Hino Motors, Ltd., and Qingyun New Energy will hold 89.72%, 4.83%, and 5.45% stakes in GAC Hino, respectively.

Simultaneously, the three shareholders will collectively inject 699 million yuan in GAC Hino as additional capital, with GAC Group contributing 627 million yuan, Hino Motors injecting 33.7648 million yuan, and Qingyun New Energy infusing 38.0991 million yuan.