HomeChina Stock News Brilliance Auto denies to inject JV with BMW into listed unit
Brilliance Auto denies to inject JV with BMW into listed unit
Written by Administrator
Thursday, 21 December 2006
BEIJING, Dec.21 (InfoChina) – Upon market speculation on Brilliance China Automotive Holdings Ltd. (NYSE: CBA, HK: 1114)’s parent company to inject BMW Brilliance Automotive, a joint venture between Brilliance Auto and BMW, into its A-share listed subsidiary Jinbei Automotive Company Limited, Brilliance Auto Group’s board chairman Qi Yumin denied such saying, adding that the group will insist on the strategy of developing simultaneously in the product market and capital market.
Qi held that the group company did have the intention to raise money from the capital market, but so far no further plan has been made upon absorbing the JV with BMW into the A-share market.
Brilliance Auto Group now has three listed companies, namely the Hong Kong and New York-listed Brilliance China Automotive Holdings Ltd and the Shanghai-listedJinbei Automotive Company Limited and Shanghai Shenhua Holdings Co. Ltd.
It is learned that with the hot selling of Brilliance-BMW sedans in China, the Brilliance-BMW joint venture at present is running at its full capacity. The company is planning to build its second factory with an annual production capacity of 60,000 to 70,000 units.
As the investment in the existing factory of Brilliance-BMW JV with 30,000 units’ annual capacity has amounted to 450 million yuan, the huge capital Brilliance Auto needs for construction of the new factory is expected by market analysts to be raised from the stock market. (Edited by Sun Huanjie,
)
China Stock News 
