(Yicai) Dec. 9 -- Changan Automobile has secured CNY6 billion (USD824 million) from its three largest shareholders to speed up the Chinese state-owned carmaker’s transition to new energy vehicles.

Changan Auto will issue new shares at CNY11.78 (USD1.62) apiece, a discount of about 16 percent on its Dec. 6 closing price, according to the private placement plan released after the market closed that day. The new shares will not exceed 30 percent of the Chongqing-based firm’s total.

Changan Auto [SHE: 000625] closed up 0.6 percent at CNY14.07 (USD1.94) a share in Shenzhen today, after earlier gaining by as much as 2.6 percent.

China Changan Automobile Group, its largest shareholder, will invest CNY1 billion, while China South Industries Assets Management and China South Industries Group Corporation, Changan Auto’s actual controller, will contribute CNY3.5 billion and CNY1.5 billion, respectively.

Both China South Industries and CCAG are subsidiaries of CSGC. After the placement, the combined stake of the three in the automaker will rise to 42.6 percent from 39.7 percent.

CNY4.3 billion of the CNY6 billion will got to projects such as a new energy vehicle development platform, while the rest will go on the second phase of Changan Auto’s global research and development center and enhancing core capabilities.

The NEV platform, which cost about CNY6.1 billion to develop, will focus on sedans, sports utility vehicles, and multi-purpose vehicles for Changan Auto and its NEV brand Deepal. The company also plans to upgrade its software-defined smart architecture platform and electric drive systems.

Changan Auto targets sales of five million vehicles by 2030, entering the global top 10 and becoming a globally influential Chinese brand. Last year, it sold nearly 2.6 million cars, up 8.8 percent from the year before.

Editor: Futura Costaglione