By P.R. Venkat


SAIC Motor Corp. plans to acquire a 71.04% Stake in Shanghai Dongzheng Automotive Finance Co. for 1.90 billion Hong Kong dollars (US$242.1 million).

Post-acquisition, the Chinese state-owned automobile manufacturer will also make a mandatory offer to buy all Dongzheng's H-shares and A-Shares, valuing the entire deal at HK$2.47 billion, the companies said in a joint statement Friday.

The offer price for Dongzheng's H-Shares is at a 25.56% premium to its last traded price of HK$0.99.

The statement said that SAIC Motor, which will finance the acquisition through its internal resources, doesn't intend to raise the offer price.

SAIC intends to maintain Dongzheng's listing status.

CICC is advising SAIC on the deal.


Write to P.R. Venkat at venkat.pr@wsj.com


(END) Dow Jones Newswires

05-26-22 2025ET