China Grand Automotive buys controlling stake in Baoxin Auto (updated)

Grand Baoxin Auto

11/12/2015 10:33

(Adds details, context) 
    BEIJING, Dec 11 (Reuters) - Auto dealership China Grand 
Automotive Services  600297.SS  purchased a controlling stake in 
luxury car dealer Baoxin Auto Group  1293.HK  for HK$8.2 billion 
($1.06 billion), Baoxin disclosed to the Hong Kong Stock 
Exchange on Friday. 
    Baoxin said China Grand paid HK$5.99 per share to buy a 53.6 
percent stake with the purchase occurring on Dec. 4. Baoxin 
shares closed at HK$4.15 last week before trading was halted on 
Monday. 
    The deal comes as China's auto market, the world's largest, 
slows from its previously breakneck pace as the economy expands 
at its weakest rate in 25 years. 
    The national automakers association chief said on Thursday 
sales are likely to grow around 3 percent in 2015 and 5-7 
percent next year.  urn:newsml:reuters.com:*:nL3N13Z31J 
    China Grand had previously said it was considering buying a 
stake in Baoxin using cash.  urn:newsml:reuters.com:*:nL4N11L3B6 
    China Grand is the country's largest auto dealership group, 
while Baoxin is the biggest dealer of BMW  BMWG.DE  brand cars. 
    Buyout firm TPG sold its reportedly 40 percent stake in 
China Grand last year before the dealer group pursued a 
back-door listing on the Shanghai Stock Exchange. 
 urn:newsml:reuters.com:*:nL6N0TI37D urn:newsml:reuters.com:*:nL3N0TP3V5 
 
 ($1 = 7.7500 Hong Kong dollars) 
 
 (Reporting by Jake Spring; Editing by Gopakumar Warrier) 
 ((jake.spring@thomsonreuters.com; +86 10 66271032; Reuters 
Messaging: jake.spring.thomsonreuters.com@reuters.net / Twitter: 
@jakespring)) 
 
Keywords: BAOXIN AUTO GRP M&A/GRAND AUTOMOTIVE