By P.R. Venkat
SAIC Motor Corp. plans to amass a 71.04% Stake in Shanghai Dongzheng Automotive Finance Co. for 1.90 billion Hong Kong {dollars} (US$242.1 million).
Publish-acquisition, the Chinese language state-owned car producer can even make a compulsory provide to purchase all Dongzheng’s H-shares and A-Shares, valuing your entire deal at HK$2.47 billion, the businesses stated in a joint assertion Friday.
The provide value for Dongzheng’s H-Shares is at a 25.56% premium to its final traded value of HK$0.99.
The assertion stated that SAIC Motor, which can finance the acquisition via its inner assets, does not intend to lift the provide value.
SAIC intends to take care of Dongzheng’s itemizing standing.
CICC is advising SAIC on the deal.
Write to P.R. Venkat at venkat.pr@wsj.com