Sou Hu Cai Jing·2025-08-23 00:07Core Viewpoint - Dongfeng Motor Group Co., Ltd. is implementing a combination of "equity distribution + absorption merger" to facilitate the listing of its high-end new energy brand, Lantu Automotive, on the Hong Kong Stock Exchange while simultaneously privatizing itself [1][5]. Group 1: Transaction Details - The transaction involves distributing 79.67% of Lantu Automotive's shares to all shareholders of Dongfeng Group, followed by Lantu's introduction listing on the Hong Kong Stock Exchange [1]. - The total acquisition price is set at HKD 10.85 per share, with a cash consideration of HKD 6.68 per share and an equity consideration of HKD 4.17 per share [3]. Group 2: Valuation and Performance - Dongfeng Group's valuation has been under pressure, with a market capitalization of HKD 39.12 billion and a price-to-book ratio (PB) as low as 0.25 times as of July 31, 2025 [5]. - In contrast, Lantu Automotive has shown strong growth, with projected deliveries of 85,697 vehicles in 2024, representing a year-on-year increase of approximately 70% [5]. Group 3: Strategic Developments - Lantu Automotive recently completed a strategic capital increase, with Dongfeng Asset Management investing HKD 1 billion, raising its stake from 0.85% to 3.3% [6]. - The ownership of Lantu by Dongfeng Group increased from 78.88% to 79.69% following this capital adjustment [6]. Group 4: Innovation and Reform - The innovative approach of "Lantu listing + Group delisting" sets a new benchmark for state-owned enterprise reform, allowing Lantu to access independent financing and enabling Dongfeng Group to focus on strategic transformation [7]. - This transaction is expected to help Lantu expand its technological advantages and international market presence, while Dongfeng Group can integrate resources for strategic realignment [7].