CHINA: Dongdeng Automobile to swap parent's truck making stake for its share of electric vehicle maker - report
Truck manufacturer Dongfeng Automobile Co. said on Monday it will swap its stake in an electric vehicle manufacturer for its parent's stake in a truck maker, Dow Jones Newswires reported.
Dongfeng Automobile reportedly said its 36.4% stake in a company that makes electric vehicles for parks was valued at 18.8 million yuan, while parent Dong Feng Motor Corp.'s 51% stake in a Xiangfan city truck maker was valued at CNY29.8 million.
The trucks made in Xiangfan are mostly used to transport livestock, a company official told Dow Jones.
The news agency said Dongfeng Automobile will pay Dong Feng Motor 11.0 million yuan in cash to make up for the difference in the asset values while, in its announcement, Dongfeng Automobile said that its shareholders have approved the deal.
Dong Feng Motor owns 70% of Dongfeng Automobile, which is listed on the Shanghai Stock Exchange, Dow Jones noted.