Guangzhou Auto may delist Denway -report
HONG KONG, Aug 4 (Reuters) - Guangzhou Automotive Industry Corp may delist 37.9-percent owned subsidiary Denway Motors (0203.HK) through a share buyback after it concludes a dual listing in Hong Kong and Shanghai by early November, the South China Morning Post reported Monday, citing sources.
A buyback would fold Denway back into Guangzhou Automotive as the Guangzhou government wants only one car maker in the province, eliminating the listing hurdle of what to do with the subsidiary, the newspaper said.
Guangzhou Automotive plans to sell shares in the domestic A-share market by the end of October and then H-shares in Hong Kong in early November, aiming to raise $1 billion in the dual listing, the newspaper added. It gave no further details.
Denway is a joint venture partner of Honda Motor Co (7267.T) and Guangzhou Automotive is a joint venture partner of Toyota Motor (7203.T).
Guangzhou Automotive is interested but is unlikely to make a serious bid for Ford Motor's (F.N) Volvo passenger car business until after completion of its dual listings in Hong Kong and Shanghai, the newspaper added.
Guangzhou Automotive said in July that it was investing 6.8 billion yuan ($993.8 million) to build a production base that would start assembling its first car under its own brand by 2010. (US$1=HK$7.8=6.842 yuan) (Reporting by Donny Kwok; editing by Jonathan Hopfner)
