Chinese OEM Chery is trying to sell half of its equity in Qoros (which amounts to 25% of the whole company), its under-performing JV and premium car brand.
A report in the China Daily says that Chinese conglomerate Baoneng has been identified as one of the likely candidates.
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The report says the offer is valid until Dec 14 and Chery demands that the buyer be a Chinese company registered on the mainland. According to the China Daily, the latest move is just four months after a similar – and unsuccessful – offering to JV partner Quantum Fund.
Qoros sales continue to disappoint and the newspaper said it sold 12,545 cars in the first 10 months of this year, a 32% decline on last year. It also said that losses at the JV have pushed up Chery's debt.
Baoneng Group is a property and financial services conglomerate controlled by Chinese billionaire Yao Zhenhua. It has shown interest in carmaking before, reports say, and the acquisition of Qoros equity would help it to obtain a carmaking license.
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