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Dongfeng Automobile Group blessing or acquisition of more than 40% stake

Reporters learned yesterday, Dongfeng Motor and Fujian Motor Industry Group Co., Ltd. (referred to as "blessing Automobile Group") is a strategic cooperation framework agreement will be signed on May 16 morning.

Currently, the two companies details of the agreement were not disclosed, but sources close to the high-level group revealed Fu steam, signing content for Dongfeng Motor Group will acquire the blessing of steam more than 40% stake, they will not involve Fu steam Southeast Automotive Group subsidiary, Fujian Daimler Le integration, new business Ryoma and other subsidiaries.

In this regard, some analysts said that if the ultimate success of the acquisition, restructuring Fu steam Dongfeng Motor Group will be following the acquisition of Nanjing Auto Shanghai Automotive Group, Changan Automobile acquired after Hafei Changhe, four Automotive Group in another remote restructuring cases. However, due to complex composition blessing Automobile Group shareholders, product reserves and the weak weaker team dealers, prospects remains to be seen.

"Conditional" has become the major shareholder

Dongfeng Motor insiders confirmed to this reporter yesterday, May 16 signing issue. The parties, the Fujian provincial government will sell part of blessing Automobile Group held shares, the person refused to disclose specific figures, but said more than 40%. Dongfeng Automobile Group restructuring blessing in July 2012 launch, in 2012, Xu Ping, chairman of Dongfeng Motor, general manager Zhu Fushou, who held talks and reached an initial agreement with senior government officials in Wuhan, Fujian, and sent a delegation to the blessing Automobile Group overall business development and financial position to inspect the formation of a memorandum of cooperation.

May 14, Hong Kong-listed Dongfeng Automobile Company, Dongfeng Motor Group Co., Ltd. (00489.HK; hereinafter referred to as "Dongfeng Motor Group") announced that the company will issue three billion yuan over the short-term financing bills since May 15 used to supplement working capital. A share listed company Dongfeng Motor (600006.SH) daily limit for two consecutive days, May 13 to close at 3.73 yuan, began yesterday suspension.

Fu steam near the top of the group who is revealed, May 16 signed content may Dongfeng Automobile Group Fook Group acquired more than 40% of the shares, in accordance with the requirements of the Fujian provincial government, when Fu Auto Group sales amounted to 300,000, the east may be a blessing Automobile Group acquired the remaining shares.

Fu Auto Group was founded in 1992, is a state-owned company in Fujian Province, in 2012 operating income of 10.26 billion yuan. Prior to 2010, Fu Auto Group has been committed to develop independently, but overall poor performance. BAIC had been signed with the blessing Automobile Group to acquire stake in Fujian Benz framework agreement, but eventually dropped.

Fu Automobile Group insiders, the group's car companies only South East Motor, Xiamen Golden Dragon profitable, Fujian Daimler, the establishment is not long new Ryoma companies are at a loss. Due to the slow product launches and other reasons, the South East car sales are sluggish, at a disadvantage in the competition, currently the largest selling product for 50,000 to 80,000 yuan Ling Yue V3 sedan.

Southeast Automotive Auto Group is currently blessing core assets, in 2012 South East Automotive revenues 7.261 billion yuan, representing a decline in 2011, but net profit and total comprehensive income of 37.295 million yuan, an increase of 11.28%, 43.62% debt ratio .

Dongfeng expansion

2012 Dongfeng Motor to increase expansion efforts, the group met with the German Getrag Transmission Company, a joint venture passenger car, with the German firm Smith trailer form a joint venture with Volvo Cars Volvo established Dongfeng Commercial Vehicle Company. Dongfeng Motor also plans to form a joint venture with France's Renault passenger car company, is waiting for the NDRC approval.

Earlier this year, held in Wuhan in 2013 working conference, Zhu Fushou said it would "further the use of global resources, and actively participate in various forms of mergers and acquisitions, strategic cooperation and seek opportunities for mergers and acquisitions on a global scale, steadily expanded technology mergers and acquisitions, platform mergers and acquisitions and brand acquisitions, gathering first-class foreign companies the advantages of resources and brand effect. "

Dongfeng Motor is the second largest automotive group, in 2012 sold 3,078,500 cars, which sold 2,455,000 passenger cars, commercial vehicle sales fell slightly to 623,000. Dongfeng commercial vehicle import business in the country has been in a leading position in the field of passenger cars and Nissan, Honda, Peugeot Citroen, Taiwan Yulon, Kia Motors has a joint-venture company and Dongfeng Fengshen, Dongfeng popular passenger cars, such as self-employed the company.

Dongfeng Motor insiders said the reorganization blessing Dongfeng Automobile Group, in line with the development of "large independent" passenger strategic needs, Fu steam Benz's business segments can fill the gaps in the luxury passenger area east of the southeast Mitsubishi's presence also adds to the DFG offers the possibility of a joint venture.

However blessing Automobile Group insiders said, because just signed a framework agreement, after due diligence and many other work, the future trend is still variable.

Shanghai, a consulting company executives pointed out that the complexity of blessing Automobile Group equity restructuring involves the interests of Daimler-Benz, Mitsubishi and "China" and other related parties of the joint venture, equity relationships and balance the interests of a very complex issue; Southeast reserve weak automotive products, dealer system biased in favor of rigid, Fujian Daimler and new Ryoma still operating at a loss state. After the reorganization of Dongfeng Automobile transportation funds not only to the southeast, but also in terms of technology, products and management for blood transfusion, providing business growth opportunities, in order to guarantee the smooth control after restructuring and revitalization blessing Automobile Group.

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