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STUTTGART, Germany and BEIJING,
Feb. 1, 2013 /PRNewswire/ --
Joint strategic move in advance and support of BAIC Motor's intention to launch an initial public offering of its shares
Investment through the issuance of new shares
Daimler first non-Chinese automotive company to take stake in Chinese OEM
Daimler to receive two seats on the Board of Directors of BAIC Motor
Daimler AG and Beijing Automotive Group (BAIC) will significantly deepen their already strong strategic partnership: according to a binding agreement signed today between executives of the two companies, Daimler AG is going to invest in BAIC Motor, the passenger car unit of BAIC Group, one of the leading automotive companies in
China. This important joint strategic move comes ahead of an intention by BAIC Motor to launch an initial public offering (IPO) in the future. Daimler's investment will take place through the issuance of new shares corresponding to a twelve percent stake in BAIC Motor.
Daimler's Chairman of the Board of Management, Dr.
Dieter Zetsche, Chief Financial Officer
Bodo Uebber, and
Hubertus Troska, Daimler's new Board Member for
Greater China, met today at the Mercedes-Benz Museum in
Stuttgart with Chairman
Xu Heyi, Deputy General Manager Zhang Xiyong, and CFO Ma Chuanqi of BAIC. As part of this meeting, they signed the contract between the two companies. Daimler's shareholding in BAIC Motor is subject to the approval by the relevant authorities. A closing of the transaction is expected by the end of this year or early next year.
The agreement includes that Daimler will receive two seats on the Board of Directors of BAIC Motor. The two companies also agreed that BAIC will increase its stake in the production joint venture Beijing Benz Automotive Company (BBAC) by 1% to 51% and will thus be able to consolidate this joint venture within BAIC ahead of its IPO. At the same time, Daimler will increase its stake in the integrated sales joint venture Beijing Mercedes-Benz Sales Service Co. by 1% to 51%.