Guangzhou Automobile Group makes back-door listing through Changfeng

Changfeng Automobile, Industry News | Ash | March 24, 2011 at 10:12 pm

GAC Changfeng, a listed firm on China’s A-share market, announced on March 23 that Guangzhou Automobile Group Co. (GAC), a state-owned auto group and the controlling shareholder of GAC Chengfeng, will make group listing by stock swap with the listed firm.

According to the concerned plan, GAC will issue no more than 470 million A shares at price of 9.09 yuan per share. Every 1.6 GAC shares will exchange for one GAC Changfeng share after the stock exchange, GAC Changfeng will be delisted.

Based on the exchange plan, the trading price of GAC Changfeng shares is at 14.55 yuan per share, which is a 15% premium compared with its average trading price of 12.65 yuan per share in the previous 20 trading days, and a 29.56% premium on the average trading price in the previous three months. An insider revealed that the auto group will complete its listing by the end of September. GAC Changfeng mainly makes light SUVs and auto parts. Its major product Leopard SUV has taken 45% shares of China’s light SUV segment. The company aims to focus on the partnership with Mitsubishi as well as the operation of its Leopard brand in future. It will also tap the passenger car segments and other fields.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.