《Economic Information Daily, Special Report on the 29th》GAC Group (02238) H-shares currently rise 5.1%, trading at HK$2.665, marking a two-day consecutive rise with a cumulative increase of 9.7%. The stock has traded approximately 11.54 million shares, involving HK$30.35 million. Its A-shares (SSE: 601238) are currently hitting the daily trading limit, priced at RMB 5.6, up RMB 0.51, with turnover of RMB 14.87 million involving 2.66 million shares. At current prices, the A-shares show a premium of 144.6% over the H-shares.
GAC announced plans to acquire from FAW Group Corporation a 50% equity stake in FAW Toyota, to be paid by issuing consideration shares at RMB 5.75 per share under special authorization, with the final consideration to be determined through negotiations between both parties. The company's A-shares have been suspended since September 14 and have applied to the Shanghai Stock Exchange for resumption of trading effective today.
*Additional配套funding planned; FAW Group to become second-largest shareholder*
Additionally, the group stated it intends to issue new A-shares to no more than 35 independent third parties to raise配套funds. The total amount of配套funds raised shall not exceed 100% of the proposed acquisition consideration, and the number of A-shares to be issued shall not exceed 30% of the total issued share capital before the proposed issuance. The issuance price shall not be lower than 80% of the average A-share price over the 20 trading days preceding the pricing benchmark date. The raised配套funds are intended for FAW Toyota project construction, supplementing working capital for the group and FAW Toyota, debt repayment, etc. Upon completion of the proposed transaction, FAW Group Corporation will become the group's second-largest shareholder.
The group noted that FAW Toyota operates in new automobile sales and other businesses, reporting a profit of RMB 1.009 billion and net assets of approximately RMB 29.66 billion in the first half of this year. Other shareholders include Toyota Motor Corporation and Toyota China. Upon completion of the transaction, FAW Toyota is expected to become a significant jointly controlled entity, and FAW Toyota's financial data will not be consolidated into the group's consolidated financial statements. The group stated the proposed transaction aims to inject profitable assets, improve profitability, and enhance the overall competitiveness of both parties. (am)
GAC announced plans to acquire from FAW Group Corporation a 50% equity stake in FAW Toyota, to be paid by issuing consideration shares at RMB 5.75 per share under special authorization, with the final consideration to be determined through negotiations between both parties. The company's A-shares have been suspended since September 14 and have applied to the Shanghai Stock Exchange for resumption of trading effective today.
*Additional配套funding planned; FAW Group to become second-largest shareholder*
Additionally, the group stated it intends to issue new A-shares to no more than 35 independent third parties to raise配套funds. The total amount of配套funds raised shall not exceed 100% of the proposed acquisition consideration, and the number of A-shares to be issued shall not exceed 30% of the total issued share capital before the proposed issuance. The issuance price shall not be lower than 80% of the average A-share price over the 20 trading days preceding the pricing benchmark date. The raised配套funds are intended for FAW Toyota project construction, supplementing working capital for the group and FAW Toyota, debt repayment, etc. Upon completion of the proposed transaction, FAW Group Corporation will become the group's second-largest shareholder.
The group noted that FAW Toyota operates in new automobile sales and other businesses, reporting a profit of RMB 1.009 billion and net assets of approximately RMB 29.66 billion in the first half of this year. Other shareholders include Toyota Motor Corporation and Toyota China. Upon completion of the transaction, FAW Toyota is expected to become a significant jointly controlled entity, and FAW Toyota's financial data will not be consolidated into the group's consolidated financial statements. The group stated the proposed transaction aims to inject profitable assets, improve profitability, and enhance the overall competitiveness of both parties. (am)
