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BIZCHINA> Center
Foton gets $151m from share placement
(Agencies)
Updated: 2008-07-16 16:33

Major Chinese truck maker Beiqi Foton Motor Co said on Wednesday it has raised 1.03 billion yuan ($151 million) from a share placement.

Foton issued 105 million shares to its parent, Beijing Automotive Industry Holding, and four other domestic firms at 9.88 yuan per share, it said in a statement.

The move increased Beijing Auto's stake in Foton to 37.71 percent from 36.43 percent and brought in major Chinese engine maker Weichai Power Co as a strategic investor with a 2.18 percent stake.

Proceeds will be used to fund Foton's engine venture with Cummins Inc and upgrade its commercial vehicle production facilities, it added.

Foton's A shares traded on the Shanghai Stock exchange rose 1.66 percent to 7.33 yuan by mid-morning trade on Wednesday, outperforming a 1.24 drop in the benchmark Shanghai Composite Index.

In April, Foton reached a preliminary agreement to set up a truck-making joint venture with Daimler AG. The two parties will finalise the deal after the Beijing Olympics in August, Beijing Auto Chairman Xu Heyi told Reuters last month.


(For more biz stories, please visit Industries)

 

 

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