China's Dongfeng Automobile Swaps Assets

SHANGHAI August 18, 2003; Dow Jones reported that truck manufacturer Dongfeng Automobile Co. said Monday it will swap its stake in an electric vehicle manufacturer for its parent's stake in a truck maker. Dongfeng Automobile said its 36.4% stake in a company that makes electric vehicles for parks was valued at 18.8 million yuan ($1=CNY8.28), while parent Dong Feng Motor Corp.'s 51% stake in a Xiangfan city truck maker was valued at CNY29.8 million.

The trucks made in Xiangfan are mostly used to transport livestock, said a company official.

Dongfeng Automobile will pay Dong Feng Motor CNY11.0 million in cash to make up for the difference in the asset values.

In its announcement, Dongfeng Automobile said that its shareholders have approved the deal.

Dong Feng Motor owns 70% of Dongfeng Automobile, which is listed on the Shanghai Stock Exchange.