Developer shall have executed a First Source Agreement and a CBE Agreement.
A well-known example of a reverse takeover in the United Kingdom was Darwen Group’s 2008 takeover of Optare plc. This was also an example of a back-flip takeover (see below) as Darwen was rebranded to the more well-known Optare name. A proxy vote is the act of the acquirer company persuading existing shareholders to vote out the management of the target company so it will be easier to take over. For example, Company A could persuade shareholders of Company B to use their proxy votes to make changes to the companys board of directors. The goal of such a proxy vote is to remove the board members opposing the takeover and to install new board members who are more receptive to a change in ownership and who, therefore, will vote to approve the takeover (hostile takeover agreement). However, a silver lining for creditors is that such an action does come with consequences to the borrower. If a subsidiary becomes
Article content
FAW Group is looking at acquiring Brilliance China Automotive Holdings Ltd, BMW’s main Chinese partner, in deals that may cost it some $7.2 billion and then take it private, two people with direct knowledge of the matter told Reuters.
Brilliance shares soared as much as 25.6% to HK$7.99 following the news.
We apologize, but this video has failed to load.
Try refreshing your browser, or China s FAW considers acquiring BMW partner Brilliance in $7.2 bln deal -sources Back to video
The potential acquisition by state-owned FAW, China’s No. 2 automaker, comes at a time when Brilliance’s top shareholder Huachen Automotive Group is on the brink of bankruptcy, having defaulted on 6.5 billion yuan ($1 billion) in debt obligations late last year.
Exclusive: China s FAW considers acquiring BMW partner Brilliance in US$7.2 billion deal - sources Toggle share menu
Advertisement
Exclusive: China s FAW considers acquiring BMW partner Brilliance in US$7.2 billion deal - sources FAW Group is looking at acquiring Brilliance China Automotive Holdings Ltd, BMW s main Chinese partner, in deals that may cost it some US$7.2 billion and then take it private, two people with direct knowledge of the matter told Reuters.
FILE PHOTO: A man and a child look at a BMW X7 car at the Beijing International Automotive Exhibition in Beijing, China September 26, 2020. REUTERS/Thomas Peter
03 Feb 2021 01:25PM Share this content
4 Min Read
(Reuters) - FAW Group is looking at acquiring Brilliance China Automotive Holdings Ltd for about $7.2 billion in a two-stage deal that would see BMW’s main Chinese partner taken private, two people with direct knowledge of the matter told Reuters.
FILE PHOTO: A man and a child look at a BMW X7 car at the Beijing International Automotive Exhibition in Beijing, China September 26, 2020. REUTERS/Thomas Peter
Brilliance shares soared by as much as a quarter in value following the news.
The potential acquisition by state-owned FAW, China’s No. 2 automaker, comes at a time when Brilliance’s top shareholder Huachen Automotive Group is on the brink of bankruptcy, having defaulted on 6.5 billion yuan ($1 billion) in debt obligations late last year.
FAW considers taking over BMW partner Brilliance
According to
Reuters, the FAW Group, which also produces electric cars for the Chinese market together with Volkswagen and Audi, could spend 7.2 billion US dollars (about six billion euros) for the contemplated takeover and is trying to get other investors on board. Brilliance China Automotive Holdings Ltd is listed on the stock exchange.
Reuters’ sources told the news agency that in the scenarios currently under discussion FAW would first acquire 30.43 per cent of Brilliance from Huachen and another 11.89 per cent from the state-controlled Liaoning Provincial Transportation Investment Group. Subsequently, FAW would then make a mandatory bid for the rest of Brilliance’s shares. They cited a price of 11 Hong Kong dollars per share (1.18 euros), a 70 per cent premium over last month’s average share price of 6.48 Hong Kong dollars. After the report was published, Brilliance shares rose to 7.99 Hong Kong dollars (0.86 euros).