Shanghai (ZXZC)- Shanghai SIIC Transportation Electric Co., Ltd. (STEC), a subsidiary of China’s automotive parts supplier Huayu Automotive Systems Company Limited, signed a stake transfer agreement with VALEO INTERNATIONAL HOLDING B.V., Huayu announced on Monday.

Per the agreement, STEC will sell its 27% stake in Valeo Shanghai Automotive Electric Motors & Wiper System Co., Ltd. at a price of RMB397,955,733.48 ($62,479,050) to VALEO INTERNATIONAL HOLDING, which is a wholly-owned subsidiary of global automotive parts supplier VALEO S.E.

Photo credit: Huayu

Valeo Shanghai Automotive Electric Motors & Wiper System Co., Ltd. was established in 1995 with a registered capital of $15.51 million, according to China’s company data platform Qichacha. Its two shareholders, VALEO INTERNATIONAL and SIIC Transportation held a respective stake of 73% and 27%. So after the said deal, SIIC Transportation will not be its shareholder any more.

The wiper company mainly develops and produces wipers and relevant components, with clients including SAIC Volkswagen, SAIC GM, FAW Volkswagen and Changan Ford. In 2020, the wiper company’s revenue amounted to RMB1.37 billion ($215.1 million) while net profit totaled RMB66 million ($10.36 million). In the first ten months of this year, its unaudited revenue was RMB1.03 billion ($162 million) while profit in the period was RMB65 million ($10.2 million).

China’s SAIC Motor is the largest shareholder of Huayu Automotive Systems Company with a stake of 58.32%.