Listed units to get SAIC injection

• Source: Global Times
• [08:15 February 14 2011]
• Comments

The parent company of SAIC Motor Corp , the nation's largest carmaker, plans to inject additional assets into its listed subsidiaries as it finalizes its move to float all of its auto-related operations, media reported over the weekend.

Huayu Automotive Systems Co, which holds most of the group's auto parts businesses, and SAIC Motor both suspended trading in their shares late Friday pending further announcements.

The parent company, Shanghai Automotive Industry Corp, already injected its core auto manufacturing assets into SAIC in late 2006 via a share placement, and will now shift its service and trading units into the firm, the Shanghai Securities Journal reported. It cited people with knowledge of the matter.

Huayu, which went public in 2008, will get more parts assets from its State parent, the newspaper said.

Reuters