Zhongsheng Shares Gain on Deal to Acquire Mercedes-Benz Distributor in China

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Dow Jones
By Clarence Leong
Zhongsheng Group Holdings Ltd.'s shares traded higher after the car dealer announced plans to acquire a Mercedes-Benz distributor in China in a cash-and-share deal worth US$1.3 billion.
Zhongsheng's Hong Kong-listed stock rose 8.9% to HK$70.35 by midday Friday, on track to close at an all-time high, and taking year-to-date gains to 27%.
Dalian-based Zhongsheng said late Thursday it had entered into a deal to acquire Zung Fu China, a major dealer of Mercedes-Benz in southern and western China, from a unit of conglomerate Jardine Matheson Holdings Ltd.
Zhongsheng plans to fund the cash payment portion of the deal via internal resources and bank financing. It will also grant shares to a unit of Jardine Matheson, the company's second-largest shareholder.

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