SHANGHAI :
China's Chery Seeks Majority Stake Buyer, Hoping to Raise USD2 Billion to Pare Debt
Zhang Yushuo
DATE:  Sep 03 2019
/ SOURCE:  yicai
China's Chery Seeks Majority Stake Buyer, Hoping to Raise USD2 Billion to Pare Debt China's Chery Seeks Majority Stake Buyer, Hoping to Raise USD2 Billion to Pare Debt

(Yicai Global) Sept. 3 -- Chery Holding and unit Chery Automobile are looking once again to sell majority stakes in themselves to pay down debt after failing to find a buyer last year.

Chery Holding seeks a single buyer for a 31 percent stake to raise CNY7.5 billion (USD1 billion), while Chery Automobile wants to sell 18.5 percent for CNY6.8 billion to the same investor, the Wuhu-based parent company told the Changjiang Equity Exchange in a statement yesterday. That amounts to CNY14.3 billion (USD2 billion).

Chery Holding tried to offload a 31.4 percent stake in itself last September, but the offer expired in December without any takers.

The Wuhu, Anhui province-based firms plan to use the proceeds to repay debt, develop businesses, and replenish registered capital, the statement added. Potential buyers must be a single entity and not a consortium, it said. 

The parent's shares sell for CNY3.92 (US 50 cents) each and that of Chery Auto for CNY6.73. A deal would boost Chery Holding's registered capital by CNY1.9 billion and that of its unit by CNY1 billion. The parent's controlling shareholder Huatai Asset Management would transfer a 15.8 percent stake and Ruichuang Investment a 4.2 percent stake in a deal.

In the first six months of this year, the parent logged a loss of CNY150 million (USD20.8 million), and revenue of CNY10.4 billion. Chery Auto lost CNY1.4 billion while its operating income was CNY13.1 billion. 

Editor: Emmi Laine

Follow Yicai Global on
Keywords:   Chery,Chery Automobile