Shanghai (Gasgoo)- Guangzhou Automobile Group Co., Ltd. announced to transfer its 25% stake in Honda Automobile (China) through the open market. Besides, the board of the group also approved GAC Honda’s plan to acquire 100% stake of Honda Automobile (China).
According to GAC, the floor price for its stake in Honda Automobile (China) will be RMB 231.6 million, which will depend on the asset appraisal result.
The group also gave consent to the proposal that GAC Honda acquires 100% stake of Honda Automobile (China) through the open market and the agreement. Moreover, the group will invest RMB 1.20 billion in this project. Honda Automobile (China) is a joint venture which has four shareholders, Honda (55%), Honda Motor (China) Investment Co., Ltd (10%), Guangzhou Automobile Group Co., Ltd (25%) and Dongfeng Motor Group Co.,Ltd (10%).
To some degree, GAC Honda's acquisition of Honda Automobile (China) is the outcome for the acquirer's outstanding marketing performance. It sold more than 660,000 vehicles from January to November of 2017 which had already surpassed the overall sales of 2016. By the end of November, GAC Honda has already completed 95.7% of the annual target. Particularly, the monthly sales of November created a record of 2017 with a total amount of 73,440 vehicles.
In the aspect of annual production capacity, GAC Honda is capable of producing about 600,000 vehicles per year with its three production lines. One of them, located in Huangpu District, is able to manufacture around 240,000 vehicles per year while the other two lines in another plant have the annual capacity of 240,000 and 120,000 respectively.
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