The BAIC Group is seeking to purchase a stake of as much as 5% in Daimler AG, which is the mum or dad firm to Mercedes-Benz. In accordance with a Reuters report, the transfer is means for BAIC to additional safe its funding in Beijing Benz Automotive, a three way partnership between the China-based firm and Mercedes-Benz.
Within the report, sources near the matter revealed that BAIC’s intention to amass a chunk of the German carmaker began earlier this 12 months, with sure shares being bought on the open market. “Daimler’s share value is at present being underpinned by a purchaser who seems to be constructing a stake,” considered one of sources stated.
For now, there’s no official phrase from both social gathering, and German regulatory filings don’t point out BAIC as being a big shareholder. It’s estimated that BAIC would to not fork out almost three billion euros for a 5% stake in Daimler, based mostly on the German firm’s closing market worth of 57.6 billion euros as of final Friday.
This “open market” strategy to share buying is paying homage to Li Shufu path to turning into Daimler’s largest shareholder with a 9.69% stake (by Tenaciou Prospect Funding Restricted). On the time, the Zhejiang Geely Holding founder needed to buy shares from different shareholders as Daimler declined to difficulty new shares as a result of it didn’t need to see present shares diluted.
BAIC’s partnership with Daimler goes again greater than a decade, with Beijing Benz being answerable for assembling a couple of Mercedes-Benz fashions in China. In March final 12 months, Daimler themselves introduced it had bought a three.93% stake in Beijing Electrical Car (BJEV), a subsidiary of BAIC, to strengthen its partnership within the space of latest power autos (NEV).
The put up BAIC Group seeking to purchase a 5% stake in Daimler AG Auto Reviews & New Cars on Paul Tan’s Automotive Information.