China's Beijing Electric Vehicle plans to reverse into $4.5 billion listing

HONG KONG (Reuters) - Beijing Electric Vehicle Co (BJEV) will gain a stock market listing through a share issue and asset swap deal valuing the state-backed electric car manufacturer at 28.8 billion yuan ($4.5 billion), according to a Shanghai stock exchange filing.

ChengDu QianFeng Electronics Co, one of the listed arms of Beijing Automotive Group (BAIC Group), will buy BJEV in an asset swap and stock sale, it said in Monday’s filing. As part of the arrangement, QianFeng plans to sell 761.1 million shares at 37.66 yuan per share.

The deal will allow BJEV to become the listing entity after the transaction, replacing ChengDu QianFeng Electronics.

BJEV, which will become the first state-owned new-energy vehicle manufacturer listed on one of China’s main stock exchanges, was established in 2009 by BAIC Group and other shareholders as a development platform for new energy vehicles(NEVs).

The company focuses on research and development, production and sales and services for NEVs and core components. To date its product portfolio covers five major series of electric vehicles.

China’s automotive market, the world’s largest, slowed sharply in 2017, but new energy vehicles have been a bright spot. Such vehicles are expected to achieve sales growth of about 40 percent in China this year, an industry association said this month.

Reporting by Meg Shen and Twinnie Siu; Editing by David Goodman