Slaughter and May, Hong Kong, is acting for China International Capital Corporation Hong Kong Securities Limited (CICC), the financial adviser in relation to the acquisition of Shanghai Dongzheng Automotive Finance Co., Ltd. (Dongzheng) by SAIC Motor Corporation Limited (SAIC Motor) by way of auction for an approximately 71.04% shareholding in, and the possible unconditional mandatory cash offer for all the H shares and domestic shares of, Dongzheng. The deal announcement was dated 26 May 2022.
SAIC Motor won the auction for approximately 71.04% shareholding, at the bid price of RMB1.6 billion (approximately USD238 million). The vendor, China ZhengTong Auto Services Holdings Limited, sold such shares pursuant to an administrative decision issued by the CBIRC Shanghai Office and an administrative ruling issued by the Shanghai Financial Court of the PRC. The maximum consideration for the possible mandatory cash offers for the H shares and the domestic shares is approximately HK$670 million (approximately USD85 million) and RMB84.6 million (approximately USD12.6 million) respectively.
SAIC Motor is a leading automobile group in the PRC listed on the Shanghai Stock Exchange. It is principally engaged in the research and development, manufacture and sale of automobiles and automobile components, automobile finance business and the provision of mobility service.
Dongzheng is an automotive finance company which is listed on the Hong Kong Stock Exchange. Its principal business comprises automotive loan business where it provides loans, direct leasing products and other financial services to the end customers, major customers and corporate clients for purchases of vehicles in the PRC.
CICC is the financial adviser to SAIC Motor in this transaction. It is a licensed corporation under the SFO licensed to carry out Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 4 (advising on securities), Type 5 (advising on futures contracts) and Type 6 (advising on corporate finance) regulated activities.