SAIC's restructuring plan released

SAIC Motor announced its restructuring plan Wednesday, according to which, the company will acquire 28.6 billion yuan ($4.4 billion) worth of assets from its parent firm, Shanghai Automotive Industry Corp. to boost its core competitiveness.

SAIC will finance the deal by selling 1.73 billion new shares at 16.53 yuan ($2.5) each to Shanghai Automotive Industry Corp., in a private placement, it said.

The assets of Shanghai Automotive Industry to be sold to the listed unit include its 60.10 percent stake in auto-parts maker Huayu Automotive Systems Co., its wholly owned units in the US and Hong Kong, its 6.01 percent stake in GM Korea Co., and its stakes in other units ranging from new-energy car makers to trade and investment firms.

After the restructuring, SAIC Motor will be capable of realizing simultaneous development of complete vehicles and auto parts.

As the country's 12th Five-Year Plan points out that new energy vehicles will be the focus of Chinese auto industry in the next five years, the company will attach more importance on new energy vehicles' development.