China‘s leading automaker SAIC Motor has acquired a stake in General Motors prior to the US automaker’s public offering in Hong Kong. SAIC Motor HK Investment, wholly owned by SAIC, bought 15.2 million ordinary shares for US$500 million, accounting for 0.97% of GM’s total equity.
SAIC said the investment in GM was based on "the two companies’ long-term, steady strategic cooperation and confidence in GM’s development prospects."
GM is SAIC’s partner in Shanghai GM, a joint venture that was set up in 1999. The joint venture is now China‘s leading automaker and sold 840,000 cars in the first 10 months of this year.
English.News.cn reported Tim Lee, president of GM International Operations, as saying the company welcomed SAIC’s participation in the public offering.