Volkswagen’s shareholding interest in JAC continues to grow.
On May 27, according to Reuters, Volkswagen Group is preparing to acquire Jianghuai Automobile (600418) major shareholder Jianghuai Automobile Group Holdings Co., Ltd. (hereinafter referred to as “Jiangqi Holdings” “) 50% equity, at least 3.5 billion yuan. In addition, Volkswagen will become the largest shareholder of power battery manufacturer Guoxuan Hi-Tech (002074). The two transactions may be announced as early as Friday.
In response, the surging news reporter called JAC Securities Affairs Department as an investor. The relevant staff stated that they did not receive relevant information from the controlling shareholder. Subsequent announcements shall prevail.
The relevant person in charge of Volkswagen China and the person in charge of Guoxuan High-tech both responded to the surging news and declined to comment.
The Reuters report also said that people familiar with the matter revealed that after the completion of the equity transaction with Jiangqi Holdings, Volkswagen plans to invest in a joint venture with JAC 50: 50 invested new capital and used its electric vehicle modular MEB platform to expand the capacity of electric vehicles.
On May 27, the Securities Times · e Company also reported that JAC employees confirmed that the objects of strategic cooperation currently under negotiation are indeed the public. However, regarding the progress of the cooperation and other specific conditions, the staff member said: “We (internally) are not open to everyone. I am not a member of the project team and do not know very well.”
< / div> It is worth noting that Jianghuai Automobile made an announcement yesterday saying that Jiangqi Holdings is planning to introduce the relevant work of strategic investors. This time the introduction of strategic investors by Jiangqi Holdings does not involve changes in the company ’s control, and it has not yet formed In the final plan, there is still significant uncertainty in this matter.
Although the news of Volkswagen ’s shareholding is not finalized, JAC has received five daily limit since May 20.
In April last year, it was reported that Volkswagen was considering acquiring a large stake in JAC. Subsequently, the JAC announcement responded that on the basis of the new energy passenger car joint venture cooperation, the two sides have been discussing how to further deepen cooperation. So far, no formal plan has been formed.
The official website of JAC shows that the company is a research, production and sales of a full range of commercial vehicles, passenger cars and powertrain2. Comprehensive automobile enterprise group covering many fields such as automobile travel, financial services, etc. with “advanced energy-saving vehicles, new energy vehicles, and intelligent connected vehicles”.
JAC and Volkswagen had a foundation for cooperation. As early as September 2016, JAC and Volkswagen (China) Investment Co., Ltd. signed a memorandum of understanding on joint venture cooperation, with a view to achieving joint development of new energy vehicles. On June 1, 2017, JAC and Volkswagen formally signed a joint venture agreement to jointly produce new energy vehicles. In December of the same year, JAC Volkswagen Co., Ltd. was officially established.
Regarding Volkswagen ’s stake in Guoxuan Hi-Tech, Reuters reported that people familiar with the matter said that Volkswagen expected to acquire about 27% of Guoxuan Hi-Tech ’s shares, mainly through discounted private placement Placing and purchase from Li Xuan, founder of Guoxuan Hi-Tech and its largest shareholder, Zhuhai Guoxuan Trading Co., Ltd.
Guoxuan Hi-Tech stock has not resumed trading since it was announced on May 20 that it was suspended due to the planning of major issues. Its current market value is 30.7 billion yuan, and 27% of its share value About 8.3 billion yuan.
Guoxuan High-tech announced the latest progress of the equity delivery yesterday evening. The transaction plan was initially determined as Li Zhen and Zhuhai Guoxuan transferring their holdings to strategic investors Part of the company ’s equity also involves other voting rights arrangements, and the company plans to issue shares to strategic investors privately.
Volkswagen ’s shareholding in Guoxuan High-Tech has been reported several times, but it has not been confirmed so far. As early as January 17, Reuters quoted informed sources as saying that Volkswagen intends to acquire a 20% stake in Guoxuan Hi-Tech through a discounted private equity placement to further expand China’s new energy vehicle market layout. Guoxuan Hi-tech then clarified on January 20 that the company is discussing with Volkswagen on possible future strategic cooperation, but has not yet reached an agreement, nor signed or reached a binding agreement.
Guoxuan High-tech Annual Report 2019 shows that the company’s main business is divided into two major business segments: power lithium batteries and power transmission and distribution equipment. The company’s installed capacity of power batteries is about 3.2GWh, and the domestic market share is 5.2%. The industry ranks third in the country, of which the installed capacity of lithium iron phosphate batteries is 2.9GWh, ranking second in the country, and the installed capacity of new energy special vehicles ranks first in the country.
It is worth mentioning that Guoxuan Hi-Tech ’s 2019 annual report also stated that the company has formed stable strategic cooperation with OEMs such as JAC, BAIC, Chery and Changan.Department, the company’s products are equipped with JAC IEV7, IEV7S, IEVA50, IEVS4 and other pure electric vehicles.