China’s sixth largest automaker, Guangzhou Automobile Group, is seeking a backdoor listing on the Hong Kong stock exchange through its Hong Kong-listed subsidiary Denway Motors. The group, which holds a 37.9 percent interest in Denway Motors, has filed an application to trade on the Hong Kong stock exchange by way of introduction, which means that the group will not offer shares for public subscription, according to a statement from Denway Motors.
Growth-hungry Guangzhou Auto experienced a strong year in 2009 in terms of business expansion. The group, which has established joint ventures with Japanese carmakers Honda and Toyota, entered into a share transfer agreement with Changfeng Group in May 2009 to acquire a 29 percent stake in Hunan Changfeng Motor. The deal made Guangzhou Auto the largest shareholder of the Yongzhou, Hunan province-based sport utility vehicle maker.
In addition, work has commenced on Guangzhou Auto’s 50-50 passenger vehicle joint venture with Fiat in Changsha, Hunan province. The first phase will have an annual production capacity of 140,000 sedans and 220,000 engines, which will then be expanded to 250,000 sedans and 300,000 engines. With an investment of more than €400 million (approximately $560 million), the facility is scheduled to be operational in the second half of 2011.
