7.22Tengzhong plans offshore agency for Hummer bid

Tengzhong plans offshore agency for Hummer bid

 

http://autonews.gasgoo.com/auto-news/1011414/Tengzhong-plans-offshore-agency
-for-Hummer-bid.html

 

Shanghai, July 22 (Gasgoo.com) China's Tengzhong, the surprise leading
bidder for the General Motors' Hummer brand, is likely to establish an
offshore investment vehicle (= agency) to facilitate its purchase, Reuters
reported today, citing a company official.

 

Sichuan Tengzhong Heavy Industrial Machinery, a little-known machinery
manufacturer based in southwest China, began seeking the regulatory approval
last week by submitting documents to the country's National Development and
Reform Commission. China's commerce ministry has been supportive of this
deal "as a way for a Chinese company to go global."

 

"Tengzhong is looking at an offshore vehicle specifically set up to purchase
Hummer," a company official said today. Tengzhong would be the majority
stake holder in the special purpose vehicle (SPV), while Li Yan (aka Suolang
Duo Ji), who is the chairman of China's chemical maker Lumena Resources
Corp, and others would take minority stakes.

 

Tengzhong expects the deal to be completed in the third quarter this year,
which is reportedly priced at $200 million at most, less than half of the
$500 million sought by GM last year. Tengzhong will start to establish an
SPV after the deal is secured.

 

"Li Yan is very keen to participate," said the official. Lumena Resources,
which shares the same home base with Tengzhong in Sichuan province, had said
earlier that its chairman and not the company itself was interested in the
Hummer deal.

 

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