Cars

Guangzhou Auto aims for HK listing by end July

(Agencies)
Updated: 2010-05-19 14:51

HONG KONG - Guangzhou Automobile, China's sixth-largest car maker, said on Wednesday it hopes to be listed in Hong Kong by the end of July, as it prepares for the move by privatising its Denway Motors unit.

Related readings:  HK float for Guangzhou Auto  GAC expands with minibus buyout  Sany Heavy mulls Hong Kong IPO  Goldwind gets nod for HK IPO

"The listing will greatly lift the company's ability to raise funds in international markets," said executive director Lu Sa at a briefing to discuss the plan.

The company plans to take Denway private by offering its own shares to Denway shareholders at a premium of up to 22 percent to their last closing price, Guangzhou Auto said, basing its statement on its own valuation of its shares.

The privatisation and subsequent listing of Guangzhou Auto will allow investors to participate in the growth of the group, which is a Chinese partner of Honda, Toyota and Fiat, it said in a filing to the stock exchange.