Brilliance investor to sell 400m shares
Huachen Automotive Group, a shareholder in Hong Kong-listed Brilliance China Automotive Holdings, is seeking US$117 million from a secondary placement, according to an e-mail sent to investors by arranger JP Morgan Chase.
Huachen was offering 400 million Brilliance China shares at between HK$2.20 and HK$2.35 apiece. The stock closed 1.2 per cent lower at HK$2.43 in Hong Kong yesterday.
Brilliance China announced last month it would dispose of its loss-making Zhonghua brand to Huachen for 494 million yuan (HK$560.79 million). The carmaker's shares surged 82.9 per cent after the announcement.
Analysts expected that BMW vehicles would become the main profit driver for Brilliance China in the future.
Germany's BMW, which is a joint-venture partner of Shenyang-based Brilliance China, signed an agreement in Beijing last month to build their second plant for five billion yuan.
The new plant in Liaoning will have an average annual production capacity of 100,000 units and a maximum capacity of 300,000.