Beijing (ZXZC)- BAIC Motor Corporation (BAIC Motor or the company) announced that, on July 15th, the company and BAIC BluePark, an A-share listed subsidiary of BAIC Group, entered into the share subscription agreement to subscribe for no less than 35.99% of the total number of new A Shares issued by BAIC BluePark.

Photo credit: ARCFOX

BAIC Motor is a Hong Kong-listed subsidiary of BAIC Group. The subscription price per share shall be determined in accordance with the pricing principle in respect of the A Share Issuance. The total subscription amount payable by BAIC Motor shall not exceed RMB2,878.8829 million ($426.37 million).

BAIC Motor currently holds 6.25% of BAIC BluePark’s stake. At the same time, the company also has strategic cooperation with the latter in product R&D, manufacturing, and marketing.

The share subscription will deepen the two companies' relationship, extend their reach of cooperation, and help BAIC Motor save its investment in the new energy vehicle field while sharing the profit. 

In addition, the proceeds from the transaction will be put to the development of skateboard chassis, the R&D and establishment of core technologies of whole vehicle products under brands like ARCFOX, and the replenishment of working capital.