Shanghai (ZXZC)- Chinese state-owned automakers BAIC Group is ready to transfer 49% stake in its Zhenjiang-based subsidiary at a base price of around 300 million, according to information in a bulletin from China Beijing Equity Exchange, marking a stable progress of the continued cooperation between BAIC and the leading global automotive supplier Magna.

Founded in September 2013, the subsidiary, dubbed BAIC (Zhenjiang) Automobile Co.,Ltd, is currently held as to 85% by BAIC Group and 15% by a local investment company, according to the bulletin. Its total assets and liabilities amounted to roughly RMB2.415 billion and RMB1.76 billion respectively as of December, 2018, and had dropped to RMB1.432 billion and RMB857 million by the end of August, 2019.

（Photo source: Magna)

The latest stake transfer indicates that the cooperation between BAIC Group and Magna about restructuring the former's Zhenjiang branch has been steadily promoted. On July 24, 2019, Magna, BAIC Group and the Zhenjiang government signed a framework agreement governing their EV manufacturing joint venture in Zhenjiang, Jiangsu Province. The transaction, which was then pending regulatory approval and other closing conditions, was expected to be closed in the fourth quarter of 2019, Magna previously said. 

The Zhenjiang-based joint venture represents Magna's first investment in a complete vehicle manufacturing facility outside Europe and would have the capacity of up to 180,000 vehicles per year.

(Photo source: ARCFOX)

The first production of electric vehicles, BJEV's ARCFOX models, was expected for launch in late 2020. The joint venture will also be capable of offering EV contract manufacturing services to other potential customers.

In June 2018, Magna and BAIC's NEV arm BJEV announced they would jointly engineer and build premium EVs for consumers in China. In January 2019, the two sides celebrated the opening of a new engineering center and announced the groundbreaking of a new NEV test center in Zhenjiang.

Then, a formal announcement released two month later said BJEV and Magna International Autolaunch Ireland Ltd. planned to form a joint venture focusing on manufacturing premium all-electric PVs. Besides, they would team up to retrofit and upgrade the existing facilities and assets of the aforesaid Zhengjiang subsidiary.