* Aims to maximise co's capital value through listing
* Wonder Auto says to reorganize some units ahead of
Dec 20 Chinese autoparts maker Wonder Auto
Technology Inc WATG.O said it launched a project to list its
unit Jinzhou Halla Electrical Equipment Co Ltd on China's
Shenzhen Stock Exchange.
Jinzhou Halla will conduct an initial public offering,
following which Wonder Auto's shareholders will continue to
hold more than 73 percent of shares in the unit, Wonder Auto
said in a statement.
The listing aims to maximize the company's capital value by
taking advantage of attractive valuations on the Shenzhen Stock
Exchange, Wonder Auto said.
Among high-growth Chinese companies listed in the U.S., the
option of going private and relisting in Asia may be attractive
given the likelihood of better valuations back home.
Wonder Auto intends to reorganize several of its
subsidiaries to consolidate in Jinzhou Hall. It expects the
reorganized businesses to account for 50-60 percent of its
projected net income in 2010.
Wonder Auto shares, which shed 15 percent of their value in
the last three months, closed at $7.95 on Friday on Nasdaq.
(Reporting by Bijoy Koyitty in Bangalore; Editing by Jarshad