On December 26, 2007 Shanghai Automotive Industry Corporation (Group), Yuejin Automobile (Group) Corporation and Yuejin Automobile Co., Ltd. signed a "cooperation agreement". SAIC Motor Corporation Ltd. (600104, SH) purchases 100% of equity interests in Nanjing Automobile (Group) Corporation at the price of RMB 2,095,000,000 cash and 320,000,000 shares of SAIC Motor Corporation Ltd. (the market value is over RMB 8,500,000,000 on December 25, 2007). The total transaction value is more than RMB 10 billion. After the closing, Nanjing Automobile (Group) Corporation will become a wholly-owned subsidiary of SAIC Motor Corporation Ltd., which makes SAIC Motor the largest car-maker in China.
Llinks advised Shanghai Automotive Industry Corporation (Group) and SAIC Motor Corporation Ltd. on all aspects of this transaction, including legal due diligence, deal structure, legal documentation, negotiation and closing.
December 2007
