CHINA: SAIC plans new automotive holding company and overseas stock exchange listing
Shanghai Automotive Industry Corp. will set up a shareholding company for its automotive assets as it prepares for an overseas share listing.
The Associated Press (AP)) said, under the plan, all of Shanghai Automotive (SAIC)'s core car manufacturing-related businesses - including its stakes in joint ventures with world giants Volkswagen AG and General Motors Corp. - will be transferred into the new holding company.
Establishing the new company, to be called Shanghai Automotive Group, is a first step in a plan to raise up to $US2 billion (€1.5 billion) in a share offering in Hong Kong in the middle of next year, AP added.
The company is also considering a listing in New York, but has not reached a decision, AP said, citing Hong Kong's South China Morning Post newspaper.
The company reportedly has approval from the Shanghai government for an overseas listing, but is still waiting for the go-ahead from central government authorities.
According to SAIC's announcement, published in financial newspapers over the weekend, the group employed 62,460 workers and had net assets worth 33.1 billion yuan ($4 billion; €3.3 billion) by the end of last year, the Associated Press said.