SAIC subsidiary approved to buy Shanghai Diesel Engine
September 13, 2008
Shanghai Automotive Co., Ltd. has gotten a nod from the China Securities Regulatory Commission (CSRC), the nation's securities regulator, for its acquisition of 241.7 million shares or a 50.32% stake in Shanghai Diesel Engine Co., Ltd. , the buyer announced on September 9.
Shanghai Automotive, a listed subsidiary under the aegis of Chinese auto titan Shanghai Automotive Industry Corporation (Group) (SAIC), is set to buy the shares from Shanghai Electric Group Co., Ltd., a mechanical and electrical equipment manufacturing giant in China, for CNY 923.42 million.
After the deal, Shanghai Automotive will become a controlling shareholder of Shanghai Diesel Engine, part of its parent company SAIC's efforts to grow into an international auto group with powerful core competitiveness.
Besides Shanghai Automotive, SAIC will have the other two listed affiliates such as Shanghai Diesel Engine and Shanghai Bashi Industrial Group Co., Ltd.