Brilliance China Automotive announced it would pay RMB 785 million (US$95 million) for a 40% stake in its JV partner Jinbei Automotive, the Shanghai-listed parent of Shenyang Automotive
The deal, announced on New Year's Eve, was expected to draw criticism by clouding the transparency surrounding Brilliance's operations. The company is at the heart of a dispute between former chairman Yang Rong and the government of Liaoning province.
Liaoning bought a controlling 39% stake in the company at a fraction of its listed price after Yang was ousted and fled to the US in 2002. Yang claims he is the owner of the stake and has announced a court action in the US to recover US$690 million from the provincial government, which he says turned against him because he wanted to invest elsewhere in China.