Economic Information Daily, 29th: GAC Group (02238) (SHA: 601238) announced that it proposes to acquire 50% equity interest in FAW Toyota from FAW Group Corporation by issuing new A-shares at a price of RMB 5.75 per share as consideration under special authorization, with the final consideration to be determined through negotiation between both parties. The company's A-shares have been suspended from trading since September 14, and it has applied to the Shanghai Stock Exchange for resumption of trading today.
*Raising Matching Funds, FAW Group Corporation to Become Second Largest Shareholder*
In addition, the company stated that it intends to issue new A-shares to no more than 35 independent third parties to raise matching funds. The total amount of matching 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 during the 20 trading days preceding the pricing benchmark date. The raised matching funds are intended for FAW Toyota's 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 second largest shareholder of the group.
The group stated that FAW Toyota operates in new automobile sales and other businesses, reported a profit of RMB 1.009 billion and net assets of approximately RMB 29.66 billion in the first half of this year, with other shareholders including Toyota Motor Corporation and Toyota China. Upon completion of the transaction, FAW Toyota is expected to become its significant jointly controlled entity, and FAW Toyota's financial data will not be consolidated into the group's consolidated financial statements. The group stated that the proposed transaction aims to inject profitable assets, improve profitability, and enhance the overall competitiveness of both parties. (wh)
*Raising Matching Funds, FAW Group Corporation to Become Second Largest Shareholder*
In addition, the company stated that it intends to issue new A-shares to no more than 35 independent third parties to raise matching funds. The total amount of matching 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 during the 20 trading days preceding the pricing benchmark date. The raised matching funds are intended for FAW Toyota's 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 second largest shareholder of the group.
The group stated that FAW Toyota operates in new automobile sales and other businesses, reported a profit of RMB 1.009 billion and net assets of approximately RMB 29.66 billion in the first half of this year, with other shareholders including Toyota Motor Corporation and Toyota China. Upon completion of the transaction, FAW Toyota is expected to become its significant jointly controlled entity, and FAW Toyota's financial data will not be consolidated into the group's consolidated financial statements. The group stated that the proposed transaction aims to inject profitable assets, improve profitability, and enhance the overall competitiveness of both parties. (wh)
