Liaoning province’s state asset regulator, which owns a majority stake in Huachen, also did not immediately respond to a request for comment. Huachen said the information was false but did not elaborate. Brilliance, Liaoning Provincial Transportation Investment Group did not immediately respond to requests for comment, Reuters said. To conduct a deal, FAW is looking at setting up an offshore investment vehicle and is seeking other investors, said the sources, who declined to be identified as the discussions were confidential.įAW and BMW declined to comment. The shares were trading at HK$6.70 on Wednesday morning, before jumping when the news emerged. It is reportedly considering offering about HK$11 per share for the two-stage deal, which would be a 70% premium to its average share price over the past month of HK$6.48. It would then make a mandatory bid for the rest of Brilliance’s shares. Under plans currently being discussed, FAW would purchase the 30.43% of Brilliance owned by Huachen and 11.89% owned by the state-controlled Liaoning Provincial Transportation Investment Group, the sources told Reuters. Sources have told Reuters that a takeover that could cost more than $7 billion is being discussed with the aim of taking the company private. 2 automaker, comes at a time when Brilliance’s top shareholder Huachen Automotive Group is on the brink of bankruptcy, having defaulted on 6.5 billion yuan ($1 billion) in debt obligations late last year. The potential acquisition by state-owned FAW, China’s No. (ATF) Shares in Brilliance China Automotive Holdings Ltd – BMW’s main Chinese partner – jumped by up to 25% on Wednesday after news emerged that FAW Group is looking at taking over the company.
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