China’s biggest electric carmaker is to gain a stock market listing in an asset swap valuing the state-backed manufacturer at 28.8 billion yuan (US$4.5 billion), giving investors a chance to bet more directly on the world’s largest market for new-energy vehicles.
One of BAIC Group’s (北汽集團) publicly traded affiliates, Chengdu Qian Feng Electronics Co (成都前鋒電子), is to buy Beijing Electric Vehicle Co (BJEV, 北京新能源汽車) in a stock sale and asset-swap deal.
As part of the plan, Qian Feng is to sell 761.1 million shares at 37.66 yuan apiece to all BJEV shareholders for the acquisition, the BAIC subsidiary said in a statement to the Shanghai Stock Exchange on Monday.
BJEV is to become the first state-owned manufacturer of new-energy vehicles to list on a Chinese stock exchange, competing for attention from investors who have driven up the share price of BYD Co (比亞迪), a Warren Buffett-backed automaker that trades in China and Hong Kong.
BJEV — which is disclosing a valuation publicly for the first time — is among companies raising funds and expanding to get a head start as China’s government encourages more clean-energy vehicles to hit the roads.
Shares of BAIC Motor Corp Ltd (北京汽車) yesterday rose as much as 5.4 percent in Hong Kong, the biggest intraday gain this month.
BJEV’s sales of electric vehicles almost doubled to 103,199 last year.
The company said it last year boosted its share of the Chinese electric vehicle market to an estimated 23 percent, from 15 percent in 2016.
BJEV raised 11 billion yuan in its latest round of fundraising announced in July last year, mainly from state-owned companies, following a 3 billion yuan round in 2016.
China in 2015 surpassed the US to become the world’s biggest market for new-energy vehicles as both traditional automakers and a bevy of start-ups work to meet the government’s target to boost yearly sales of plug-in hybrids and fully electric cars 10-fold in the next decade.
China has made electric vehicles a strategic initiative as part of its push to lead in automotive technology, curb pollution and cut dependence on imported oil.
At this month’s CES trade show — a global stage to showcase the latest developments in consumer electronics — more than one-third of the 4,500 exhibitors were from China.
Byton (拜騰), a brand of Nanjing, China-based Future Mobility Corp Ltd, which was started by former BMW AG executives, unveiled a US$45,000 sport utility vehicle.
Within days, XPeng Motors (小鵬汽車), backed by funding from Alibaba Group Holding Ltd (阿里巴巴), unveiled a production model.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to