Tianjin Faw Xiali Automobile has announced that it planned to sell its stake of 17.5m shares (17.5%) in the general insurer Sanguard Automobile Insurance to parent company China FAW Group Corporation.
The stake is estimated to be worth CNY219.9m ($31m).
The proposed sale of the stake in Sanguard by FAW Xiali is part of a major asset reorganisation of FAW Xiali, that mainly comprises the transfer of shares of listed companies, the sale of major assets, the issuance of shares to purchase assets, and fund raising.
FAW Xiali’s board of directors held a meeting on 20 December 2019, in which they reviewed and approved the company’s major reorganisation of assets. At present, the audit and evaluation of the assets to be sold or purchased have been completed, and the evaluation results have been filed with the State-owned Assets Supervision and Administration Commission of the State Council.
It is reported that the base date for the valuation of Sanguard is 31 December 2019. The book value of the company’s shareholders’ equity then was CNY1.16tn.
The insurer has eight other shareholders, with companies in the FAW group holding the majority of shares.