- Dec 19, 2005
- Bulgogi Knedliky 1.6 GDI (Hyundai i30)
I tried to just snatch a part of the article but since it's chinese I figured I'd just copy it all and they wouldnt mind. Excuse the horrible layout, it's a 1:1 copy.
http://www.caijing.com.cn/20080707/73373.shtmlCaiJing said:China's independent auto manufacturer is plumbing banks and private equity firms in preparation for a buyout of Volvo.
By staff reporter Ouyang Changzheng
Chery, one of China?s fastest growing auto manufacturers, is weighing a plan to buy Volvo from the trouble-ridden Ford.
Sources from Chery told Caijing that the plan is still in its infancy, and Chery?s management hasn?t reached an agreement, nor has it sent a report for approval to the Anhui government.
Jin Yibo, assistant to Chery?s CEO, ruled out the possibility at an interview with Caijing.
But sources confirm that Chery has been in contact with banks and private equity firms about financial support for a potential buyout. Industry insiders estimate that Volvo might cost Chery more than 30 billion yuan.
Established in late ?90s by local government of Wuhu, Chery produces several lines of passenger cars. The company plans go public in Shanghai in late 2009.
Financial analysts think that buying Volvo would raise Chery?s debt to equity ratio and cast some negative impacts on its planned IPO. They suggest Chery partner with several private equity firms and launch a joint acquisition.
Despite rumors that Ford would spin off the Volvo brand, Xu Guozhen, Ford China?s deputy chairman denied that information and refused to comment on the plans of Chinese domestic auto manufactures.
1 yuan = US? 0.14