Dongfeng Motor Gets Regulatory Approval for Restructuring

By Jiahui Huang

Chinese automaker Dongfeng Motor Group has obtained regulatory approval for its plans to delist in Hong Kong and spin off its electric-vehicle arm as a separate listed company.

Dongfeng Motor said Tuesday that it has received approval from relevant government authorities.

The state-owned automaker said last August that its high-end EV line Voyah will list separately on the Hong Kong stock exchange, while the rest of the business will be taken private. Dongfeng Motor's shareholders will receive 6.68 Hong Kong dollars in cash, equivalent to 86 U.S. cents, and 0.3552608 Voyah share for each share they currently hold.

The move came amid the carmaker's restructuring push to address the increasingly competitive domestic auto market. Founded in 1969, parent Dongfeng Motor Corp. is one of China's oldest and largest state-owned auto manufacturers.

Write to Jiahui Huang at [e-mail]

(END) Dow Jones Newswires

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