Shanghai Automotive Industry Corp is seeking to list its car-parts assets through a local bus company, backed by a plan of the local government to restructure its auto-related units.
Shanghai Bashi Industrial (Group) Co, the city's biggest bus operator, will receive car-parts making assets from SAIC, the company said in a statement filed to Shanghai Stock Exchange yesterday.
It didn't provide further details.
In an earlier statement, Shanghai Bashi said it will exit the public transport business after the transfer.
Officials from SAIC told Shanghai Daily that Shanghai Bashi will be a major platform to take SAIC's remaining car-parts assets, paving the way to list its smaller business.
SAIC now holds an 83.83 percent stake in the Shanghai-listed SAIC Motor Corp, which contained key auto-parts assets and auto-making assets in ventures with Volkswagen and General Motors Corp.
Some other spare-parts assets were injected to Donghua Co Ltd, which is jointly formed with Nanjing Auto as part of an industrial-wide consolidation.
SAIC is also considering changing the name of Shanghai Bashi.
SAIC is the nation's biggest auto maker with sales of more than 1.69 million units for last year.
At the end of last year, it acquired Nanjing Auto's core spare-parts assets and vehicle-making assets including stakes in the Nanjing MG Motor as it merged with the smaller rival.
The biggest merger in China's auto industry helped it to enlarge production capacity and complete a product line-up to further compete with foreign rivals.
Shares of SAIC Motor dropped 1.36 percent to 9.44 yuan (US$1.36) while the Shanghai Composite Index edged up 0.18 percent.
Shanghai Bashi suspended its trading yesterday.
(Shanghai Daily June 17, 2008)
