Chery sells 20% stake to local investors

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Chery sells 20% stake to local investors

Source: The Global Times
[16:55 December 08 2010]
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By Shi Jierui

Chery Auto, one of China's largest automakers in Anhui Province, has raised about 2 billion yuan ($293 million) by selling a 20 percent stake in the company to local private-equity investors including Bohai Industrial Investment Fund Management Co and CDH Investments, according to The Wall Street Journal.

Chery's assistant manager Jin Yibo confirmed the transaction but refused to release the names of investors. He said the company would use the money for development, while continuing to pursue overseas acquisitions.

Chery failed to meet its 480,000-unit sales target last year, selling just 356,000 units. Jin said this year Chery aims to sell 419,000 vehicles.

The carmaker has been considering plans for a domestic initial public offering (IPO) in Shanghai, and the investment will set a valuation standard for an offering when Shanghai's exchange reopens for IPO applications.