Weichai Power Co. Ltd. said it planned to list its A-shares on the Shenzhen Stock Exchange after it privatizes its 28.12 percent-owned Torch Automobile Group Co. Ltd.

The Chinese diesel engine maker said in a statement it would offer one new Weichai A-share for every 3.53 Torch shares held, or 5.05 yuan cash for each Torch share held.

The Hong Kong-listed company said the issue price of each Weichai A-share would be at 20.47 yuan (US$2.57). That compared with a closing price of HK$19.08 (US$2.45) on Aug. 18 prior to a trading suspension.

Weichai said the merger will be subject to approval from the company's shareholders, Torch's shareholders and the China Securities Regulatory Commission.

Trading in H-shares of Weichai will remain suspended pending a further statement.

Weichai had said in May that it would pay 684.75 million yuan (US$86.09 million) to raise its stake in Torch to 28.12 percent from 12.69 percent. Torch owns 51 percent of Shaanxi Heavy-Duty Motor Co. Ltd., one of the five largest heavy-duty truck makers in China.

Source:佚名