HONG KONG: BAIC Motor Corporation said on Wednesday it planned to sell new shares for $422 million to replenish funds for working capital.
The automaker said it would sell 420 million shares or 5.2 per cent of its enlarged share capital to third party investors. They will be sold at HK$7.89 apiece, or an 8 percent discount to the previous close.
BAIC Automotive Group’s stake in the Hong Kong-listed firm will be reduced to 42.6 per cent on completion of the deal from 44.98 percent, while Daimler’s holding will fall to 9.55 per cent from 10.08 per cent.