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

Provided by 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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