Shanghai (ZXZC)- Chery Holding and Chery Automobile Co.,Ltd (Chery Automobile) failed to find a new investor who is willing to acquire certain portion of stakes in both two companies by injecting capitals, according to announcements released by Changjiang Equity Exchange.

The announcements show that the transaction invitation officially started on September 29 and was supposed to be terminated on November 22. However, by the end of December 20, the deadline for the final extension period, no investor would like to take over the business.

On September 17, Chery Holding and Chery Automobile Co.,Ltd (Chery Automobile) issued pre-announcements for the increase of company's registered capital and shares on Changjiang Equity Exchange.

According to respective announcements, Chery Holding and Chery Automobile planned to concurrently bring in new investors by means of enlarging the shares by increasing capital. The investors should subscribe the registered capital of RMB 1,962,151,751 and RMB 1,012,931,633 newly added by Chery Holding and Chery Automobile respectively. 

Huatai Asset Management and Wuhu Ruichuang Investment Co., Ltd, two of the Chery Holding's shareholders would transfer their equity of 15.6782% and 3.8799% in Chery Holding to new investors to ensure a smooth process.

If the capital and shares increase was achieved, the registered capital for Chery Holding would grow to RMB 6,240,558,251. The existing three shareholders would hold 68.5581% of stake in total and the new investors would occupy 31.4419% stake in Chery Holding. Meanwhile, the registered capital of Chery Automobile would be increased to RMB 5,469,831,633 after the process completed.

Some industrial professionals analyze that Chery's auction failure may be attributed to the complicated and rigorous demands about the capital increase required by Chery.

According to the announcement published before, Chery required that the company must be invested by an independent entity rather than jointly invested by several firms. Meanwhile, foreign enterprises and complete vehicle makers are also excluded.