China’s Chery Automobile in search of new investors

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Chery Automobile's QQ model in Ukraine. Photo: Wikimedia Commons/ANT Berezhnyi

Chinese automaker Chery Automobile, known as Qirui, is planning to introduce external investors through a cash injection of no less than 20 billion yuan (US$3.12 billion), Yicia.com reported.

The report says the capital and share increase plan has won a unanimous vote in the internal employees’ congress.

Previously, Qirui denied the rumor that Baoneng Group intended to invest 25 to 27 billion yuan to buy into the company.

There is also a source that claims it is not only Baoneng that wants to invest in Qirui, but also potential buyers like Fosun International, CDH Investment and the Zhengdao Group.

In March, the company increased its registered capital to 4.28 billion yuan from 3.3 billion yuan by transferring 22.86% of the equity stake to Huatai Securities Asset Management in a 978-million-yuan deal. As a result, Huatai has become the third largest shareholder.

Wuhu Construction Investment and Wuhu Ruichuang Investment, backed by the Wuhu municipal government, remain the largest and second largest shareholders respectively. The State-owned Assets Supervision and Administration Commission of Wuhu city is the actual controller of Qirui.

Source

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