CORRECTED - CORRECTED-Tengzhong eyes offshore vehicle for Hummer

Wed Jul 22, 2009 6:22am EDT

(Corrects attribution to company spokeswoman from company official)

BEIJING, July 22 (Reuters) - China's Tengzhong, the surprise leading bidder for the General Motors' Hummer brand, is likely to establish an offshore investment vehicle to facilitate its purchase, a company spokeswoman said on Wednesday.

Sichuan Tengzhong Heavy Industrial Machinery, a little-known machine maker based in southwest China, began the long approval process last week by submitting documents to the country's National Development and Reform Commission. [ID:nPEK143454]

"Tengzhong is looking at an offshore vehicle specifically set up to purchase Hummer," said the spokeswoman.

Tengzhong would be the majority stake holder in the special purpose vehicle (SPV), while Li Yan -- also known as Suolang Duo Ji -- the chairman of China's chemical maker Lumena Resources Corp, and others would take minority stakes, said the spokeswoman.

"Li Yan is very keen to participate," she said.

Tengzhong has not begun the process to establish an SPV, because it must wait for the deal to be completed first, she added.

Tengzhong still expects the deal to be completed in the third quarter this year, which media reports have priced at between $150 million to $200 million, much less than the $500 million that GM had sought last year.

Lumena Resources -- which had said earlier that its chairman and not the company itself was interested in the Hummer deal -- and Tengzhong share the same home base in Sichuan Province. ($=6.83 yuan) (Reporting by Kirby Chien, Editing by Jacqueline Wong)

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