GM to Buy Back 1% in Shanghai GM
Saic Motor Co (SHA: 600104), China's biggest carmaker by output, said its board has approved General Motors Co's (NYSE: GM) $91.4 million offer to buy back its 1% stake in their Chinese joint venture. The deal requires Chinese regulatory approval. GM, which currently owns 46.357% of Shanghai GM, sold the 1% stake for $84.5 million when it went broke in 2009.
Yongda Auto Shelves HK IPO
China Yongda Automobile Services Holdings Ltd, the biggest BMW distributor in the country, called off its Hong Kong initial public offering aimed at raising $430 million after failing to attract enough investors, according to people familiar with the matter. Auto dealers in China are struggling to raise funds amid a decelerating market, including two that failed to sell bonds last month.
Steelmakers Get Nod for ¥134b Projects
Baoshan Iron & Steel Co (SHA: 600019) and Wuhan Iron & Steel Co (SHA: 600005), two of China's largest mills, won approvals for their projects, both capable of producing 10 million tons of steel a year. Baoshan Steel will invest ¥69.68 billion in its project in Zhanjiang, Guangdong province, and Wuhan Steel will invest ¥63.99 billion in its project in Fangchenggang, a port city in Guangxi Zhuang Autonomous Region.
Changyu Wine to Build 300 Outlets in Guangdong, Hainan
Yantai Changyu Pioneer Wine Co Ltd (SHE: 000869), China's largest wine producer, said it plans to build 250 outlets in Guangdong province and 50 in Hainan province in the next three to five years. The new retail stores are expected to generate a total of ¥3 billion in revenues per year.
$1 = ¥6.32