GAC Group suspends A-share trading to acquire FAW joint venture stake via share issuance
GAC Group signed a letter of intent with China FAW Co., Ltd. on September 14, 2026, to acquire part of FAW’s equity in an unnamed automotive joint venture through a share issuance and supporting fundraising. The transaction is expected to be a major asset restructuring and related-party transaction but will not change the actual controller or constitute a backdoor listing. GAC Group’s A-shares have been suspended since September 14 for up to 10 trading days, while its H-shares surged over 12% on September 15.
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GAC Group Plans Major Asset Restructuring, Shares Remain Suspended
On September 18, GAC Group (601238) announced that it is planning a major asset restructuring. The company intends to acquire a partial equity stake in a joint-venture vehicle manufacturer held by China FAW Co., Ltd. through the issuance of shares, along with raising supporting funds. As of the announcement date, GAC Group and relevant parties are actively advancing work related to this transaction. Consequently, trading of the company's A-shares will remain suspended. The announcement was reported by People's Finance News via stockstar securities news.
GAC Group to acquire FAW Group's stake in unnamed automotive joint venture
Chinese carmaker GAC Group has signed a letter of intent with FAW Group to purchase part of FAW's equity interest in an unnamed automotive joint venture. The proposed acquisition will be carried out through a share issuance by GAC Group along with a supporting fundraising exercise. GAC Group stated that the restructuring involves a company listed overseas and that more details will be released after the restructuring plan is finalized. Trading in GAC Group's A shares was suspended from market open on September 14, 2026, pending the transaction. According to the translated statement, the deal is expected to be treated as both a material asset restructuring and a connected transaction, but it would not alter the company's ultimate controlling party or amount to a backdoor listing. The JV is classified under automobile manufacturing in China's National Economic Industries and holds licenses for road motor vehicle production and vehicle inspection. The letter of intent is preliminary, and final terms are subject to a formal agreement and regulatory approval. FAW, the counterparty, is a joint stock company based in Changchun, Jilin Province, involved in vehicle manufacturing including new energy vehicles, parts design, and engineering research.
Read sourceGAC Group H-shares surge over 12% on plan to issue A-shares to buy FAW's stake in joint venture
GAC Group's H-shares (02238.HK) surged over 12% on September 15, following the company's announcement of a plan to issue A-shares to acquire a portion of equity in a joint venture vehicle manufacturer currently held by China First Automobile Co., Ltd. (FAW). The company also plans to raise supporting funds. A letter of intent was signed between GAC Group and FAW on September 14. The stock price jump reflects investor optimism about the proposed acquisition, which would consolidate GAC's stake in the joint venture. The deal is still subject to further negotiations and regulatory approvals.
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GAC Group Plans Share Issuance to Acquire FAW Joint Venture Stake, Suspends Trading
GAC Group announced on September 14 that it has signed a Letter of Intent with China FAW Co., Ltd. to acquire part of the equity in a joint venture vehicle company held by FAW. The acquisition will be executed through the issuance of shares, along with raising supporting funds. The transaction is expected to constitute a major asset restructuring and a related-party transaction, but will not result in a change of actual controller or a backdoor listing. As a result, GAC Group's A-share stock has been suspended from trading since the market opening on September 14, 2026, with the suspension expected to last no more than 10 trading days.
Read sourceGAC Group Plans Share Issuance to Acquire Joint Venture Equity from FAW; Trading Suspended
On September 14, GAC Group (601238.SH) announced it has signed a Letter of Intent with China FAW Co., Ltd. to acquire part of the equity in a joint venture vehicle manufacturer held by FAW. The acquisition will be conducted through issuing shares, with supporting funds also raised. The transaction is expected to constitute a major asset restructuring and a related-party transaction, but will not result in a change of actual controller or a backdoor listing. As a result, GAC Group's A-share trading has been suspended from market opening on September 14, 2026, for an estimated period not exceeding 10 trading days. The announcement was reported by Cailian Press.
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