(Yicai Global) Sept. 29 – Leading Chinese carmaker SAIC Motor Corp. [SHA:600104] will spend USD21.9 million (CNY146 million) to purchase a controlling stake in Wuhan Kotei Big Data Corp. via a wholly-owned subsidiary in a bid to kick off high-precision navigation data development and boost autonomous driving technology commercialization.
Kotei Big Data and its shareholders recently signed a strategic share purchase agreement with the automaker, Guangzhou Hi-Target Navigation Tech Co. [SHE:300177], one of Kotei Big Data's major shareholders, said in a statement yesterday.
After the deal, SAIC will hold a 51-percent stake in the target firm through one of its wholly-owned subsidiaries, the Guangzhou-headquartered firm said.
Incorporated last year, Kotei Big Data has completed initial commercialization of its data technology and is recognized as one of the few providers of standardized and customizable high-precision navigation mapping services in China, the statement said.
SAIC's investment in the firm will enable it to adapt its navigation products to the latest self-driving technology, and the former's dominant position in the auto industry will help Kotei Big Data develop its business.
Hi-Target Navigation Tech will reap profits from the share sale, and the deal will provide a solid foundation for its high-precision mapping business unit to penetrate the driverless vehicle market, the statement said.