Catc proposed backdoor listing of local dealers to accelerate the pace of financing

After Dalian Group Holdings Limited IPO overseas, domestic auto dealer group have accelerated the pace of listing and financing, China Automobile Trading Co (hereinafter referred to as “ catc ”) is expected to become a backdoor listing in the near future, listed second domestic car dealers.

Among the catc backdoor listing in the plan, the borrowed shell for construction machinery Limited by Share Ltd (hereinafter referred to as “ DSTG ”). Recently, DSTG announced, intends to hold all of the assets and liabilities and the actual control of the national machine group China Automobile Trading Co equity equivalent replacement, at the same time, to the national machine group and Tianjin Bohai issued shares held by the other, buy into the automobile trade surplus equity, after the completion of the transaction, the company will hold 100% stake into the automobile trade.

Catc is the largest domestic import car dealers, wholly owned or holding car 4S shop 18, mainly involving general automobile brand Opel, GM Buick imported cars, Chrysler jeep, Dodge, MITSUBISHI, Ford, Lexus, Volkswagen imported cars, east wind Honda, Guangzhou Honda etc..

It is understood that catc and DSTG actually belong to the China National Machinery Industry Corp subsidiary, which had the main business is the production of road machinery, in the past year a huge loss. According to the company's annual report shows that the company's main business income in 2009 was 402 million yuan, net loss of 71 million 695 thousand and 700 yuan; and in the first quarter of this year, the company continued to lose 15 million 19 thousand and 700 yuan. So the company decided to work on the top of the sky as a shell and inject new assets into it.

Up to now, the assessment of the assets and assets of the heyday Tiangong has not yet been completed. Upon completion of the transaction, into the automobile trade will become the next domestic listed car dealer.

The reporter observed

Listed car dealer is not easy: At present, the successful listing dealer group is scanty, but market ready or are planning in the number of dealers have been considerable, except Guanghui, large, Shanghai Yongda, Yuantong products have market ready, the China car dealers in the top 50, there are many listing plan.

Deputy Secretary General of China Automobile Association Luo Lei said that currently meet the listing requirements of the dealer is not a few, for 3 consecutive years of profit, profit rate reaches a certain index, no violations, but not necessarily to achieve market. “ the state has strict control over the number and scale of listed companies. There are many companies listed in the queue, including many car companies, so it is difficult for the car dealers to come into the market ”.



In fact, the current car dealers listed hard landing A shares, the gem is not large, such as Dalian or Hong Kong stocks in IPO, and another domestic dealer group has submitted an application to the selection in the overseas listing.

Listing can broaden the source of funds for the auto dealers, standardize the corporate governance structure, and win more development opportunities for the enterprises. However, listing means to become a public company, and all profit indicators and investment matters need to be public, which means that the concept of dealer group leadership must be changed.

It is understood that the China Automobile Circulation Association recently announced the list of the top 50 Dealers Industry in 2009, sales of 10 billion dealer group has 11, more than 5 billion yuan of about 15