Geely Automobile Holdings has confirmed Geely Group's intention to take a majority stake in the compact-car maker, but denied any plans to take complete ownership of it.
The confirmation is in line with Geely Group's long-term goal to complete its 'back-door' listing through gradual asset injections into Hong Kong-listed Geely Automobile, which has been in progress for the past two years, according to analysts.
In a statement issued yesterday, Geely Automobile said substantial shareholder Geely Group - the mainland's first privately funded carmaker - was in discussions to take an effective majority stake in Geely Automobile by buying all of the shares it did not already hold in Proper Glory Holdings.
Proper Glory is the controlling shareholder of Geely Automobile with a 60.7 per cent stake.
Geely Automobile's shares were suspended yesterday after reports that Geely Group planned to privatise Geely Automobile.
Geely Automobile said its car-making joint ventures sold 8,010 cars last month, down 20 per cent year on year. Full-year sales totalled 96,693 units, up 27 per cent from 2003.