Home > Community > China Biz > Brilliance Auto to place 1.314 bln new shares to parent

Brilliance Auto to place 1.314 bln new shares to parent

Published: 04 Dec 2008 02:11:09 PST

Dec. 4, 2008 (China Knowledge) - Brilliance China Automotive Holding Ltd (Brilliance Auto)<1114>, the first Chinese auto maker listed outside mainland China, announced late Tuesday that it will sell 1.314 billion new shares to its controlling shareholder Huachen Automotive Group.

Huachen Automotive will subscribe for the new shares, accounting for 39.4% of the enlarged outstanding shares of the Hong Kong-listed company, for RMB 490 million. The average price of the share transaction is HK$0.43 apiece.

The share placement, when completed, will raise the parent's shareholding in Brilliance Auto to 55.38% from the current 39.41%, sources reported.

Proceeds will be used to repay debt and supplement working capital at its Shenyang Automotive unit, it added.

Shares of Brilliance Auto rose 1.28% to open at HK$0.395 after resuming trading on Wednesday morning.

Copyright © 2008 www.chinaknowledge.com

Send feedback or comments to: news@chinaknowledge.com

For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today:

To access our page on Bloomberg, type CKFI