Beiqi Foton gets green light for share sale

Beiqi Foton Motor Co Ltd<600166>, China's biggest light commercial vehicle maker, has got approval from the China Securities Regulatory Commission (CSRC) for its non-public shares offering, said the company in a filing with the Shanghai Stock Exchange yesterday.

The Beijing-based company announced earlier the plan to raise as much as RMB 1.23 billion (US$173 million) by selling 100 million to 111.2 million shares to no more than 10 investors in Shanghai, with which the auto maker will set up a venture with Cummins Inc to produce 2.8-liter and 3.8-liter engines in Beijing, as well as to upgrade its bus assembly line and expand its engineering institute.

Its parent, Beijing Automotive Industry Holdings Co, has agreed to buy 40 million shares at RMB 9.88 apiece.

Beiqi Foton's shares closed at RMB 12.99 yesterday in Shanghai.