Huayu Automotive to Bid For 11% Stake in SAIC-Controlled Automotive Firm

MT Newswires Live10-09 14:35

Huayu Automotive Systems (SHA:600741), through subsidiary Shanghai Huizhong Automotive Manufacturing, plans to bid for a 10.96% stake in Lianchuang Automotive Electronics, according to a Shanghai Stock Exchange filing on Friday.

The stake will be listed on the Shanghai United Assets and Equity Exchange with a transfer price of 320.25 million yuan.

If successful, the transaction will increase Shanghai Huizhong's total shareholding in Lianchuang Automotive to 16.25% from 5.30%.

The target company produces automotive smart steering, braking and suspension control systems. Its clients include the SAIC-GM-Wuling joint venture, BYD (HKG:1211, SHE:002594), Seres Group (HKG:9927, SHA:601127), Great Wall Motor (SHA:601633, HKG:2333), Chery Automobile and SAIC Motor's (SHA:600104) joint venture with Volkswagen.

Lianchuang Automotive is indirectly controlled by Huayu's parent, SAIC Motor.

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