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GAC to Buy Partial Stake in FAW Toyota, No Merger of Two Toyota Joint Ventures
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On September 14, GAC Group announced plans to purchase part of the equity of a vehicle joint venture held by FAW Co., Ltd. by issuing shares and raising supporting funds. Sources indicate the joint venture is FAW Toyota Motor Co., Ltd. The transaction is not expected to involve FAW Toyota Auto Sales Co., Ltd., and GAC will not acquire the entire FAW Toyota stake held by FAW. The deal will not directly lead to a merger of GAC Toyota and FAW Toyota. After completion, FAW Toyota will continue to exist as a separate entity with shareholders FAW Group, GAC Group, and Toyota. Toyota Motor will become the largest shareholder of FAW Toyota. Additionally, sources revealed that FAW Group may hold approximately 30% of Guangzhou Automobile Group shares after the transaction.
Source report
GAC Plans to Acquire Partial Stake in FAW Toyota; No Merger of North and South Toyota for Now
September 15 — On the evening of September 14, GAC Group announced its intention to purchase part of the equity in a vehicle joint venture held by FAW Co., Ltd. through a share issuance, while also raising supporting funds.
According to reports, the "vehicle joint venture" referenced in the announcement is FAW Toyota Motor Co., Ltd. Sources indicate that the transaction is unlikely to involve FAW Toyota Auto Sales Co., Ltd.
Key details of the proposed transaction include:
- GAC Group will not acquire the entire equity stake in FAW Toyota held by FAW Co., Ltd.
- The transaction will not directly lead to a merger of GAC Toyota and FAW Toyota.
- Following the completion of the deal, FAW Toyota will continue to operate as a separate entity.
- The shareholders of FAW Toyota will become FAW Group, GAC Group, and Toyota Motor.
- Toyota Motor is expected to become the largest shareholder of FAW Toyota.
Additionally, sources revealed that FAW Group may hold approximately 30% of the shares of Guangzhou Automobile Group after the transaction is finalized.
Source
domesticEastern
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