Shares of Adcaned Lithium Electrochemistry (KY) Co (Aleees, 立凱) rose to the daily limit of 10 percent yesterday after securing NT$2 billion (US$61.7 million) investment from FDG Electric Vehicles Ltd (五龍電動車), in which Hong Kong tycoon Li Ka-shing (李嘉誠) owns a major stake.
FDG, listed on the Hong Kong stock market, is to hold a 21.8 percent share of Aleees and become the biggest shareholder of the company after subscribing to 46 million new common shares of Aleees via a private placement, Aleees spokesman Huang An-pang (黃安邦) said in a telephone interview.
Aleees shares are priced at NT$35 each.
In addition, FDG is to spend an additional NT$420 million to buy Aleees’ “green” energy assets.
In turn, Aleees is to buy a 4.2 percent stake in FDG for HK$490 million (US$63.18 million) to set up a strategic partnership with the Hong Kong company.
Aleees said that the strategic partnership between FDG and the Taiwanese firm is pending approval from shareholders of the two companies and a regulatory nod.
Aleees primarily produces lithium ferrous phosphate used in batteries for electric cars, with the company lately expanding its business to electric car batteries, Huang said.
Li, chairman of Hong Kong-based CK Hutchison and Cheung Kong Property (長地集團), is one of the major investors in FDG, which specializes in electric cars.
The stock price of Aleees climbed to NT$33 yesterday, while the Taipei Exchange (TPEx, 櫃檯買賣中心) inched up only 0.07 percent.
Buying in Aleees shares spread to other electric car component makers in the local equity market, helping the sector outperform the broader market at a time when the main board and the over-the-counter market moved in a slow session in reflection of losses on other regional markets yesterday, dealers said.
Market analysts said that the acquisition price offered by FDG serves as an important indication to many investors who have been upbeat that Aleees shares would go higher to challenge the NT$35 level on the back of Li’s fund injections.
Analysts said that Li has gradually disposed of some of his assets in Hong Kong and China, but moved others to different markets, so FDG’s plan to invest in Aleees is being watched closely in the local market.
The plan to invest in Aleees simply follows an earlier project by an investment firm owned by Li that invested in Taiwanese sound technology firm Ambidio.
Among other electric car battery suppliers, shares of Coremax Corp (康普) rose 6.6 percent to close at NT$56.5, and shares of Changes Ascending Enterprise Co (長園科) gained 10 percent to NT$74.2 amid optimism toward electric car development, the dealers said.
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