The dust of Volkswagen China’s entry into Guoxuan Hi-Tech is settled.
On the evening of May 28, electric vehicle battery manufacturer Guoxuan Hi-Tech (002074.SZ) announced that it planned to raise more than 6 billion yuan. The object of the issuance is Volkswagen China, and the number of issued shares shall not exceed 30% of the total share capital of the company before the issuance. At the same time, Zhuhai Guoxuan, the controlling shareholder of Guoxuan Hi-Tech, and Li Zhen, the actual controller, transferred 5% of the company’s shares to Volkswagen China. Upon completion, Volkswagen China will be the largest shareholder. In addition, Volkswagen China has promised that it will irrevocably give up the voting rights of some of its company shares within a certain period of time, so that the voting rights of Volkswagen China will be at least 5% lower than those of the founding shareholders.
At this point, the deal, which has been continuously reported since the beginning of the year, is finally settled. It is worth noting that in January this year, according to Reuters, Volkswagen will acquire a 20% stake in Guoxuan High-tech. In fact, the shares acquired by Volkswagen China increased to 30% compared with the initial report.
Guoxuan Hi-Tech is one of the earliest enterprises in China engaged in independent research and development, production and sales of new energy vehicle power lithium-ion batteries. According to the GGII data of the Institute of High Technology Industry, in 2019, the installed capacity of Guoxuan High-tech Power Battery reached 3.22GWh, ranking third in the country, second only to the Ningde era and BYD. In terms of customers, Guoxuan Hi-Tech has established strategic cooperation relations with BAIC, SAIC, JAC, Chery, Geely, etc.
For Volkswagen China, the entry into Guoxuan Hi-Tech or one of its important measures to consolidate new energy battery technology will further compete for the Chinese electric vehicle market. In April last year, Volkswagen Group CEO Diss said that the Volkswagen Group will start the industry’s largest electric vehicle offensive to date. By 2028, the Volkswagen Group will launch about 70 new electric models worldwide. By then, the Volkswagen Group plans to deliver 22 million pure electric vehicles worldwide, of which more than half will come from the Chinese market.
In addition to Guoxuan Hi-Tech, Volkswagen Group’s merger and acquisition of shares of Jianghuai Automobile (600418.SH) has also spread recently. On May 27, according to Reuters reports, Volkswagen Group is in the final negotiations for the acquisition of 50% of the shares of JAC Group, with a merger amount of at least 3.5 billion yuan. If this deal is concluded, it may become the largest M & A transaction in the field of electric vehicles in China.
According to this rumor, some JAC employees confirmed to the “Securities Times” that the target of strategic cooperation currently under negotiation is indeed the public.
On the evening of May 28th, Jianghuai Automobile announced that Jiangqi Holdings is planning to introduce strategic investors. It is currently in the initial stage of deliberation and planning, and the final plan has not yet been formed, so there is significant uncertainty in this matter.
Under the influence of relevant news, since May 20, JAC hasWon four daily limit, the cumulative increase has reached 53%. The Guoxuan Hi-Tech has been suspended since May 20, and then announced that it will continue to be suspended from May 27, and it is expected that the suspension will continue for no more than 5 trading days.
(The picture is from the official Weibo of Volkswagen China)