(Sznews, Sep 05, 2006) WEICHAI Power Co. said yesterday it plans to list A shares on the Shenzhen Stock Exchange after it privatizes its 28.12 percent-owned Torch Automobile Group Co.

The Hong Kong-listed diesel engine maker said in a statement it would offer one new Weichai A share for every 3.53 Torch shares held, or 5.05 yuan cash for each Torch share held.

Weichai Power said the issue price of each Weichai A share would be 20.47 yuan (US$2.57). That compared with a closing price of HK$19.08 (US$2.45) Aug. 18 prior to a trading suspension.

Weichai said the merger will be subject to approval from its shareholders, Torch¡¯s shareholders and the China Securities Regulatory Commission.

Trading in H shares of Weichai will remain suspended pending a further statement.

Weichai said in May that it would pay 684.75 million yuan to raise its stake in Torch to 28.12 percent from 12.69 percent. Torch owns 51 percent of Shaanxi Heavy-Duty Motor Co., one of the five largest heavy-duty truck makers in China.
Source:Sznews
tag:China energy