Guangzhou Automobile Group has raised its offer to take Denway Motors (0203.HK) private as part of efforts to consolidate assets ahead of a share listing in Hong Kong, the Wall Street Journal reported. State-owned Guangzhou Auto owns 37.9% of Denway, a holding company for the group’s assets in a joint venture with Honda Motor. It is offering to buy all Denway shares it doesn’t own for 0.47 new shares in Guangzhou Auto, up 25% from its original offer of 0.38 shares made on May 19. Based on Guangzhou Auto’s target IPO price, the all-stock offer values Denway at high as US$6.62 billion, up from US$5.29 billion. Shares in Denway rose by as much as 12% on Tuesday after being suspended Monday, before closing up 2.3% at HK$3.62 (US$0.46). Templeton Asset Management, Denway’s second-largest shareholder with a 15.47% stake, reportedly said last month it would support the buyout at the original offer level.
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