BEIJING, April 12 (Xinhua) -- FAW Car Co., Ltd. (FAW Car, 000800.SZ) announced on Thursday night that it intends to swap most of its assets and liabilities for the equivalent part of the shares of FAW Jiefang Automotive Co. Ltd. (FAW Jiefang).
Both companies are subsidiaries of FAW Group Co., Ltd. (FAW), a Chinese state-owned automotive manufacturing company.
After the transaction, the main business of FAW Car will be the development, manufacturing and sales of commercial vehicles. The move will help realize the A-share listing of FAW's commercial vehicle business.
Bringing in the assets of FAW Jiefang with strong sustained profitability will be conducive to protect the interests of FAW Car's shareholders, said the company.
During this reorganization, FAW Car intends to raise supporting funds from less than 10 investors through non-public-offering shares and convertible bonds. (Edited by Gu Shanshan)
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