A Deutsche Bank China affiliate and Huarong Asset Management intend to sell their holdings in carmaker Chery Automobile for CNY465m (US$73.07m), according to an asset transaction website.
Rongde Asset Management, Huarong’s asset management venture with Deutsche Bank and several other overseas investors, is seeking to shed its 16.5m shares, or 0.43% of Chery’s outstanding shares, for CNY76.73m, Reuters reported, citing Beijing Equity Exchange, a government-backed platform for public trading of assets.
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Huarong, China’s top state asset management firm, has also put its 83.5m shares, or 2.15% of Chery shares, for sale for CNY388.28m.
In 2009, Chery sold an unspecified amount of shares to Huarong and several other investors for CNY2.9bn to help fund its auto manufacturing projects, Reuters noted.
Gross losses at Chery, China’s biggest independent car maker, stood at CNY873.9m at the end of 2010, according to the equity exchange filing, although it posted net profit of CNY240m for the year.
In the first 10 months of 2011, Chery sold 522,800 vehicles, down 3.1% year on year, lagging a 5.9% gain in China’s overall car market, according to the China Association of Automobile Manufacturers.
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By GlobalDataSales by Chinese car makers, including Chery, have declined this year after the government ended tax incentives for small cars and subsidies for minivans at the end of 2009.
