China National Heavy Duty Truck, one of the country's top three heavy-duty truck manufacturers, will inject its entire stake in a Shenzhen-listed company into its Hong Kong-based unit, which is seeking to list in Hong Kong in June.
China Truck will transfer its 63.78 per cent shareholding in CNHTC Jinan Truck, which has a value of 6.53 billion yuan based on yesterday's closing price of 32 yuan, to CNHTC Hong Kong, according to a statement filed with the Shenzhen Stock Exchange.
The asset transfer, which won the approval of the Ministry of Commerce in January and the State-owned Assets Supervision and Administration Commission in February, is part of the pre-listing restructuring of the Shandong-based truck maker and will not involve any cash.
It has yet to receive a waiver from the China Securities Regulatory Commission exempting CNHTC Hong Kong from buying the rest of the shares.
Under mainland stock exchange rules, the buyer of more than a 30 per cent stake in a listed company must make a general offer for the rest of the shares.
In the case of China Truck, it is highly likely to receive the waiver as it remains the ultimate controlling shareholder in Jinan Truck.
In a similar pre-listing restructuring last year, China Coal Energy, the country's second-largest coal producer, and China Communications Construction, the top port builder, received the waiver.