FORD Motor Corp has cleared the final hurdle in its bid to take 20 per cent of Jiangling Motors Corp following key approval from China's Ministry of Machinery Industry.
A Shenzhen Securities and Exchange Commission official said yesterday consent had been given by the ministry on Monday, although the company said it would not comment until next week.
Approval comes after the China Securities Regulatory Commission agreed to the light-truck maker issuing foreigners-only B shares in Shenzhen.
According to the official, the ministry agreed to Jiangling producing new products jointly with Ford, and to the proposed B-share issue.
The Nanchang-based company is to allocate 80 per cent of its 174 million new B shares to Ford, giving the US company a 20 per cent stake in the company.
Jiangling will raise US$40 million to $50 million from the issue - 60 per cent in the form of American depositary receipts with the remainder listed in Shenzhen.