Guizhou Guihang Automotive Components mulls private placement

Feb. 12, 2009 (China Knowledge) - China's Guizhou Guihang Automotive Components Co<600523>, a manufacturer of automobile components, announced that it plans to issue up to 110 million shares at the price of RMB 8.03 per share to China National Guizhou Aviation Industry Co Ltd (CNGAI) and Guizhou Gaike Aerospace Mechanical & Electrical Co Ltd (GGAME).

According to the company's filing with the Shanghai Stock Exchange (SSE), the proceeds from the share offering will be mainly used to fund its acquisition of three domestic companies.

The Shanghai-listed company said it will acquire 100% stake each in Guizhou Fenglei Aviation Armament Co Ltd and Guizhou Tianyi Electrical Appliances Co Ltd from CNGAI and 100% in Guizhou Tianyi Electrical Appliances Co Ltd from GGAME.

Last year, Guizhou Guihang Automotive raked in RMB 1.46 billion from core business, up 8.12% year on year, while its net profit surged 82.23% to RMB 69.63 million, with earning per share standing at RMB 0.24.

Shares of the company surged 9.99% to close at RMB 11.01 on Thursday.