CHINA: Shanghai Automotive restructured to control all group automakers
Shanghai Automotive Company Ltd. has increased its stake in Ssangyong Motor Co. to give it a majority shareholding.
According to the Korea Herald, Shanghai Automotive Co. Ltd acquired 48.92% of Ssangyong's shares in 2006 from another subsidiary of Shanghai Automotive Industry Corp. It recently increased this to 51.33%, giving it a majority.
Ssangyong Motor was acquired by the Chinese conglomerate in October 2004 following the collapse of its parent, Daewoo.
Shanghai Automotive now controls all of the group's key vehicle and auto parts makers, including Shanghai General Motors Co., Ltd.
The share transfer, carried out as part of the group's financial restructuring plan that began in October 2005, will allow Shanghai Automotive to concentrate on developing its core auto makers, the company said.
"With the completion of the 2.41% share transfer, Ssangyong will become an integral member of SAIC's global vehicle business strategy," the company said adding that the company's board of directors and its chief executive officer Choi Hyung-tak will continue to manage the company as an independent corporation.