Daimler is rumored to be in shares of Beiqi or blocked by industrial policy


According to Reuters, Daimler considers the acquisition of shares in the passenger vehicle business of BAIC Group, a partner in China. After the latter's listing, Daimler will hold 10% to 20% of its shares in order to promote business development in China. The final shareholding ratio will depend on the results of consultation between Daimler and BAIC Group.

Yesterday, the reporter did not get a clear answer to this question from the Beijing Automotive Industry Corporation and its subsidiary Beijing Automotive Co., Ltd. ("Beiqi").

The Beiqi passenger car segment, which has been listed for many years, is expected to enter the market's countdown period this year. “There will be more progress to be worth paying attention to.” Insiders of Beijing Auto Group revealed to reporters.

According to reports, BAIC has already hired Goldman Sachs and Morgan Stanley two investment banks to prepare for the listing of Beiqi.

There are four joint-stock companies under BAIC Group, including Beiqi Passenger Vehicle, Beiqi Foton, Hainachuan and Penglong. Prior to this, senior executives of the Beijing Automotive Group revealed to the media that BAIC could gradually realize the overall listing by splitting its listing. Beiqi Co., Ltd. was established on September 28, 2010. At that time, there were 6 shareholders. Except that BAIC Group had become a controlling shareholder with a 51% equity ratio, Shougang Co., Ltd. was the second largest shareholder with 18.31% of its shares.

In September last year, Beijing Automotive Group Chairman Xu Heyi disclosed in public that the BAIC Group’s goal was to arrange for the Beijing-based subsidiary of passenger cars to go public in Hong Kong in 2013. IPOs for initial public offerings would raise about RMB 10 billion.

The time, place and way of getting listed are becoming clear day by day. It seems that the Beijing Automotive Passenger Vehicles Division is close to the market. Daimler intends to invest in shares, letting the outside world see the dawn of the completion of the listing of Beiqi.

However, industry analysts expressed doubts about Daimler’s stake in Beiqi, “according to Beijing Automotive’s listing of the 'three steps' plan, the first step of BAIC’s own brand of passenger vehicles and off-road vehicles, new energy vehicles and Beijing Hyundai’s The assets were injected into Beiqi Co., Ltd. and the second step will be Beijing Benz’s Chinese equity and Saab’s intellectual property acquired in 2009 will be put into Beijing Auto Co., Ltd. Beiqi Co., Ltd. will complete the loading of Beijing Benz’s Chinese assets, but due to Beijing Benz’s BAIC Group and Daimler. Lego will have 50% of the shares. If Daimler shares shares in Beiqi, the ratio of Beijing Benz will be less than 50%, which is contrary to the current automobile industry policy,” the person analyzed.

In other words, if Daimler shares shares in Beiqi, according to the current industrial policy, BAIC must increase the proportion of its equity in Beijing Benz, and this must be approved by the relevant national authorities.

The downturn in the European market has led Daimler to share more dividends in the Chinese market. According to the reporter's understanding, as early as last year, Daimler planned to work more closely with Beijing Automotive Group and proposed a cross-shareholding plan.

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