Motor Vehicles and Parts News
- Shanghai Auto to sell bonds for acquisitions
Date: 26-Jul-2007 Sources: (Shenzhen Daily)
SHANGHAI Automotive Co., China's largest carmaker, plans to sell as much as 8 billion yuan (US$1.06 billion) worth of bonds that can be converted into shares to finance acquisitions and car production.
The six-year bonds will be sold to holders of A shares and bondholders will receive call warrants enabling them to buy Shanghai Auto's shares, the company said in a statement yesterday. It didn't say when the sale would take place or how many call warrants investors would receive. Shanghai Auto said it needs a total of 27.36 billion yuan to develop its Roewe brand, expand production of commercial vehicles and repay debt. The carmaker agreed last month to buy out its partners in a truckmaker and an auto-parts venture for 1.48 billion yuan.
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