Guangzhou Automobile yesterday increased its privatisation offer to shareholders of Hong Kong-listed Denway Motors by about 25%, by offering them more Guangzhou Auto shares. The improved offering still includes no cash and the buyer said there will be no further revision to the...share exchange ratio.
Guangzhou Auto, China's largest carmaker, is planning to make its 37.9%-owned affiliate Denway a wholly owned subsidiary and then list its own shares on the Hong Kong stock exchange instead. Since the privatisation will be paid for entirely through new shares, the current shareholders of Denway will become shareholders of Guangzhou Auto, but with continued exposure to Denway and its 50-50 joint venture with Honda.
According to a...
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