New | Chinese developer Greenland Holding enters into automobile dealership business
Greenland to acquire 30 per cent stake in China Rudong through a HK$1.55 billion share subscription exercise
Mainland developer Greenland Holding Group will enter the automobile dealership business with a share subscription in Hong Kong-listed China Rundong Auto Group for about HK$1.55 billion.
Rundong will issue Greenland Financial Overseas Investment Group , a wholly owned subsidiary of developer Greenland, about 536.27 million shares, comprising at least 251.94 million ordinary shares and up to 284.33 million convertible preference shares(CPS) at a subscription price of HK$2.89 a share.
Greenland will be interested in 30 per cent of the issued ordinary company shares of Rundong, assuming no CPS has been converted into ordinary shares. Upon full conversion of the CPS, Greenland’s interest in the company will increase to 46.2 per cent. China Rudong’s name will change to China Gereenland Rundong Auto Group.
China Rudong said Greenland, after investing into the company, will fully support Rundong Auto’s development, provide or facilitate low-cost financing arrangements and guarantees, loans, line of credits or other financing measures to strengthen its credit and broaden its financing channels.
China Rudong said it would be able to expand its automobile sales and services in the larger customer base of Greenland. The latter can introduce the company’s luxury automobile customers to its real estate, consumer finance and big consumption markets.
Greenland and China Rudong will jointly develop a new area of business in the internet arena and community services, such as the provision of electric vehicle charging piles in commercial buildings and local communities, speedy automobile repair, maintenance and insurance in the local communities.