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Changan Auto to buy back B-shares

Published: 16 Feb 2009 18:16:08 PST

Feb. 16, 2009 (China Knowledge) - Chongqing Changan Auto Co Ltd<000625><200625>, Ford Motor's partner in China, said on Sunday that it plans to buy back its own Hong Kong dollar-denominated B-shares.

Changan Auto said in a statement filed with the Shenzhen Stock Exchange yesterday that the company plans to buy back up to 423 million B-shares for HK$ 909 million, HK$ 3.68 per share, in the 12 months period. The repurchase plan, however, will need the approval from its shareholders at a meeting scheduled to be held on Mar. 3.

According to Changan, its B-shares tumbled 76% to stand at HK$ 1.68 on Oct. 9, 2008, far below its RMB-denominated A-shares in the Shenzhen stock market.

In addition, its biggest shareholder, a unit of state-owned China South Industries Group Corp, will see its shareholding in Changan Auto increasing to 55.64% from 45.55%.

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