Jiangling Motors Corp says it plans to either buy assets from, or take equity interests in, four car-related companies controlled by its parent, Jiangling Motors Corp (Group).
Jiangling Corp told the Shenzhen stock exchange, where it trades its B shares, that the four companies were Nanchang Gear Factory, Jiangling Gear Co, Jiangling Chassis Corporation Co and Jiangling Seat and Trim Factory.
The news comes as Ford Motor Co said it planned to lift its stake in the Nanchang carmaker to 30 per cent from 20 per cent by buying new B shares.
Ford will take up 120 million new B shares - the bulk of the 170 million new shares Jiangling Corp plans to sell to foreign investors - for HK$421.1 million, or $3.51 a share.
Jiangling Corp will raise $596.7 millionfrom the share issue, equivalent to 15 per cent of its enlarged share capital.
A Ford spokesman said the company had no plans to further raise its stake in Jiangling Corp after the latest purchase.
