Carmaker Chery finds buyer for majority stake, USD 670 mln deposit committed
Sep 09, 2019 (China Knowledge) - Chery Holding and Chery Automobile have received an investment from Tengxing Yangtze River Delta Haining Equity Investment Partnership (Tengxing). A down payment of RMB 4.7 bln is committed to seal the deal.
After the completion of the transaction, Tengxing will become the biggest shareholder with a 30.99% stake. In the meantime, it will gain 28.555% shares of Chery Auto via the parent company Chery Holding, becoming the largest shareholder of both Chery Holding and unit Chery Auto.
On 2 Sept, Chery Holding and Chery Auto issued pre-announcement on the capital and share increase at the Changjiang Equity Exchange. Both parties intend to introduce Tengxing by ways of capital and new shares issues to raise RMB 7.53 bln and RMB 6.81 bln respectively, with a total not less than RMB 14.35 bln.
The pre-announcement said that the main purpose of this fundraising exercise is to realize Chery Group’s next stage of development goals and to repay existing debts.
According to Chery’s “Strategic 2025” development plan, the enterprise will prioritize development in new products, new technologies, new energy vehicle, intelligent interconnection plus driverless, global branding and marketing.
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