SAIC's $1.5 bln private placement of A-shares approved

• Source: Gasgoo
• [10:44 November 19 2010]
• Comments

SAIC Motor announced Tuesday it has received approval from the State-owned Assets Supervision and Administration Commission for its private placement of A-shares, the Beijing Times reported Thursday.

In late June, the company released a statement saying that it plans to issue no more than 900 million A-shares and raise at most 10 billion yuan ($1.5 billion) in a private placement of new shares. The shares will be priced at a minimum of 11.47 yuan ($1.73) each.

The company will sell the new shares to no more than 10 parties, including its parent, Shanghai Automotive Industry Corp. Group, which intends to spend no less than 10 billion yuan purchasing at least 10% of its total shares worth about 10.68 billion yuan. And SAIC Motor shall provide the financial support necessary to its parent.

The Shanghai-listed automaker will invest the proceeds into its own-brand passenger and commercial vehicle projects, dual-clutch automatic transmission project, as well as the second phase construction of its technical center. The first two projects will cost the company 5.53 billion yuan and 11.79 billion yuan respectively.

SAIC Motor closed at 18.29 yuan on Monday, and has fallen by a cumulative 8.27% in the past month.