Shanghai Auto purchased 1%stake of ShGM

SOHU Auto exclusively learned that Shanghai Automotive Group Co., Ltd. held a Board Meeting on the morning of December 4th to examine and finally approved the program on the acquisition of 1% stake of Shanghai General Motors Co., Ltd. and reorganization of the major asset.

Shanghai Auto Group Co., Ltd. (hereinafter short for Shanghai Auto) plan to purchase in cash 1% equity interest of Shanghai General Motors Co., Ltd. (hereinafter short for Shanghai GM) held by General Motors China (hereinafter short for GM China) through its wholly-owned subsidiary Hong Kong Shanghai Automotive Co., Ltd. (hereinafter short for SAIC Hong Kong).

The consideration of this transaction includes 8.45 million U.S. dollars and its interests from June 1st (included) to the closing date (included) with an annual interest rate of 11%. This consideration is a final one and will not affect by any adjustment.

If it can be guaranteed that Shanghai Auto continuously combines the sales of Shanghai GM’s business into their financial statements according to the accounting standards, either directly or indirectly, GM China or its affiliated companies have the right to repurchase the subject of this transaction from the SAIC Hong Kong.

Under the premise of the completion of this transaction, since June 1st (the closing date and thereafter are included), the SAIC Hong Kong enjoys all the dividends belonging to the subject of this transaction. All dividends of the Shanghai GM before May 31st (included) should be shared by the original shareholders according to the proportion of their funds are funded.

When this transaction is completed, Shanghai GM will add a board of directors, appointed by the SAIC Hong Kong, the actual seats of the Company and GM China in Shanghai GM will change to 6: 5 from 5: 5. This reorganization will not be involved in other personnel adjustments and arrangements. Shanghai GM’s business model will not be changed. The cooperation with various original investors of Shanghai GM in technology, brand, management, operation and other areas still will remain and continue.

That GM Shanghai Auto plans to buy 10% stake of GM India reported by foreign Medias was not referred to in notification of the Board meeting.（translator: Yalong/ Jessie）

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