Beijing Auto may merge Zotye before listed

　　Beiqi, which is preparing to be listed on the stock exchange, has been enriching the layout. Zotye Auto from Zhejiang may probably be purchased before Beiqi’s debut.

　　21st Century Business News receives internal exclusive news from Beiqi that the Chairman of Beiqi Xu Heyi has already delegated Zhang Xin, General Manger of Passenger Car Division, who has several discussions with the senior executives from Zotye regarding to the joint cooperation from both sides.

　　The possible plan is that Beiqi will merge Zotye prior to debut in the market.

　　The products of Zotye and Beiqi are complementary. The acquisition of Zotye will help Beiqi improve the layout of independent brands, which will arrange the layout in east of China and successfully “go south”. Zotye, which has been always seeking to be listed, could debut indirectly by using the platform of Beiqi.

　　To hold the whole vehicle’s assets of Zotye?

　　For the independent brands, Beiqi will continue to use the thought of “combining high-end and low-end, engaging south and north” to keep developing. Zotye possesses two production bases in Zhejiang Yongkang and Hunan. The main production base of Beiqi is still located in Beijing, and microcar base has been built in 2008 in Zhuzhou of Hunan. As one of the “four small” automobile companies, according to the plan on revitalizing and developing the auto industry, is encouraged to integrate in the region.

　　“Beiqi takes over Zotye, will increase for Beiqi directly two bases in Hunan and Zhejiang Yongkang, which helps Beiqi easily locates in east and south of China.” auto analyst Zhong Shi said. Viewing from the products, Beiqi has paid 200 million dollars to purchase relative intellectual property of Saab last year, including three whole vehicle platforms of Saab 9-5, 9-3 and the other model, the technology ownerships of two series of turbo-charged engines, gearboxes, and some manufactured molds.

　　At present, the overseas returnees’ team and the original Beiqi’s team of technology’s development and research, led by Beiqi’s General Manger Wang Dazong, are intensively developing and researching three auto models of middle- and high-end independent brands, including Beijing Hyundai Sonata, Chrysler Beryl and B700, B800 based on the Benz. These automotive models are mainly ranged in the A + B-level models.

　　Counting on the JEEP series, microcar in Hunan and A0 level vehicle, the automobile models of Beiqi’s independent brands are complementing with the existing models from Zotye.

　　On Beijing Auto Show, Zotye has showcased “Long” series, which came from the platform, technology and production line of several A00 and A0 level automobile models, including Palio, Xiyena and Multipla, which were bought out by Fiat in 2008. Before that, the leading products of Zotye are small SUV Zotye 2008 and 5008, which are locally produced from the platform and car model of Toyota’s Terios.

　　Reporter learned that Beiqi may publish additional shares for Zotye to hold the whole assets of Zotye. “Before the debut, to enlarge the scale of capitals, is the usual way.” a securities analyst who pays long-term close attention to vehicle industry believes. “Particularly purchasing the companies, whose products are complementary with the existing businesses, will help lay the foundation to seek financing by listing on the stock market”.

　　Seeks Zotye debuting by new energy?

　　Zotye is also seeking to enter the market. Previously, Zotye has already set up a special IPO working group. The members possess many years of successful experiences to list the enterprises and to operate capitals, and have full confidence in the IPO, and have done a lot of preparatory works. During the Beijing Auto Show, President of Zotye Wu Jianzhong revealed that they will accelerate the process to overall debut in the market.

　　In the past few years, although the market of Zotye’s small SUV is acceptable, the companies of independent brands always face the hunger of capitals because of the need of large amount of the investment for development and research

　　Earlier this year, Zotye has introduced eleven well-known enterprises and Foundation & Investment institutions as strategic investors, including JF asset Management, Xinghe Group, Haiyue Holding. The total raised funds were 72 millions.

　　To be merged by Beiqi means that the part of Zotye’s whole vehicle will lose the opportunity to list independently. But the analysts believe, due to Zotye itself is a small and medium enterprise among the automotive companies, even independently debuting, and the financing prospects are hard to guarantee. Not to mention, Securities Regulatory Commission is strict about debut’s approval. It’s not easy for Zotye to list on the market. If the listing of Zotye couldn’t go smoothly, it may be merged in the wave of the integration in the auto industry. But with the help of Beiqi, Zotye might successfully ahead list for financing.

　　The reporters learned about the previous plan of Zotye, which is divided into two parts, the whole vehicles business and the new energy business. Even the business of whole vehicle of Zotye will be ended the road of debut with the acquisition, the part of new energy will be still able to list on the market separately.

　　In the field of new energy, Zotye and Putian Sea Oil New Energy Power Co., Ltd. have signed an official strategic cooperation agreement to focus on the development of new energy, which will replace the batteries. According to the agreement, both sides will adopt the method to cooperation that Zotye Motor focus on developing and providing all kinds of series of pure electric cars, and Putian See Oil emphasizes on developing the supply of new energy. Although this road is also dangerous, the new energy vehicles of Zotye have successfully been sold in the market, which is the first sold unit of pure electric vehicles in China

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100526/n272348335.shtml

　　(Jianfei Keke)