Tuesday, March 11, 2008

Rocket Capital to invest US$100 mln in Brilliance China

Rocket Capital Investment Group I (BVI) Ltd and its partners have agreed to buy 10% to 15% new shares of Brilliance China Automotive Holdings Ltd<1114>, Bayerische Motoren Werke AG's China partner, with an expected cost of US$100 million.

The deal will help fund the increased output of BMW and sedans under its own Zhonghua brand, the Hong Kong based auto maker said on Monday, adding that a joint venture may also be formed by the two sides to boost its sales in the U.S. market.

General Manager with Rocket Huang Jianhua said in a press conference it will be a long-term investor of Brilliance, which marks the first time Rocket would invest in a listed company.

In regard to the stake holding in the expected new JV, Wu Xiaoan, president of Brilliance said the issue is now under discussion and both sides showed intentions to hold a controlling stake.

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