Shanghai Automotive Industry Corporation, which hopes to tie up a £1 billion joint venture deal with British car maker MG Rover in the next four weeks, has spun off a key subsidiary paving the way for its first overseas listing in New York by the end of June, according to the Daily Telegraph.
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SAIC reportedly has set up a separate “shareholding company” which it is believed to want to list on the stock exchanges in New York and Hong Kong, raising $US6 billion (£3.1 billion).
The Daily Telegraph said the new business, Shanghai Automotive Group Company, will run SAIC’s two joint ventures with General Motors and Volkswagen, fuelling speculation the planned joint venture with MG Rover will be folded into the new listed business.
The paper added that SAIC wants to increase its annual output to four million vehicles – from 800,000 this year – to be among the world’s top six car makers by 2020.
