SAIC plans to raise 10 billion Yuan for

　　SAIC Motor Corp. will release A shares with a total amount of 10 billion Yuan, at a price no less than 11.47 Yuan a piece. The raised funds will be mostly put into use of four large projects, passenger cars and commercial vehicles of SAIC's own brands, Dual Clutch Transmission and technical center construction. Among them, the own brands' passenger car is the key project, which plans to invest 6.0471 billion Yuan.

　　The Beijing News reports this offer will be paid by cash. SAIC Group will invest no less than 1 billion Yuan to purchase at least 10 percent of the shares, and also promise that other companies can buy the released shares with the same price, which will form affiliate transaction. This offer requires first the approval by State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government. Then it will be brought to company's stockholders meetings for discussion and approval. After China Securities Regulatory Commission examines and authorities, the offer will be put into practice.

　　SAIC Motor Corp. has the total capital stock of 8.52 billion shares. The controlling shareholder SAIC Group obtains 6.67 billion shares with a holding rate of 78.28%. After this offer, the holding rate of SAIC Group will be still more than 70%.

　　According to the direction of investment funds, this offer will fund the own brands' passenger car project 6.0471 billion Yuan. In addition, 1.1785 billion Yuan will be put into the own brands' commercial vehicle project, 656.5 million into the project of Dual Clutch Transmission, 2.804 billion into technical center construction project. The total amount of investment will reach 10.6861 billion Yuan.

　　SAIC Motor Corp. Vice Chairman and President Chen Hong said, in the next five-year plan, the total sales amount of Roewe and MG, SAIC's own brands, will reach 0.5 million units. According to SAIC, the sales amount achieved 1.47 million units in the period of January to May, increased by 48%. It is estimated that the overall sales will exceed 3 million units and the company's own brands will achieve the growth rate of 100%.

　　It is worth to mention that the investment of independent brands will focus on the research and development. The total amount of investment in passenger cars of SAIC's own brands will be 2.3751 billion Yuan. It will be mainly applied to not only the development, upgrade and modification of the platform and automobile models, but also the research and development of own brands' new energy vehicles.

　　In the auto models, this project aims to develop the middle-class and middle- & high-class passenger cars of independent brands, including the products from eight series of Roewe and MG. It concerns basic passenger cars, Sports Utility Vehicle (SUV) and many other car types, involving 3 series of middle-class vehicles and 5 series of middle- and high-class vehicles.

　　About the development of new energy vehicles, the project will invest on two whole new auto models of plug-in hybrid vehicles and pure electric vehicles

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100705/n273281649.shtml

　　(Jianfei Keke)