Reuters logo
UPDATE 1-Wonder Auto to list subsidiary on Shenzhen exchange
December 20, 2010 / 12:01 PM / in 7 years

UPDATE 1-Wonder Auto to list subsidiary on Shenzhen exchange

* Aims to maximise co’s capital value through listing

* Wonder Auto says to reorganize some units ahead of listing

Dec 20 (Reuters) - 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. [ID:nSGE6AE11]

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 Kakkrakandy)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below