Sou Hu Cai Jing·2025-08-29 10:55Core Viewpoint - Dongfeng Motor Group Co., Ltd. announced that its subsidiary, Lantu Automotive, will be listed on the Hong Kong Stock Exchange through an introduction listing, while Dongfeng Group will simultaneously complete its privatization and delisting [1][4]. Group 1: Transaction Structure - The transaction involves a combination of "equity distribution + absorption merger," with two core components being interdependent and progressing simultaneously [2][3]. - Dongfeng Group will distribute 79.67% of its shares in Lantu Automotive to all shareholders, followed by Lantu's introduction listing on the Hong Kong Stock Exchange [2][3]. Group 2: Financial Details - H-share shareholders will receive 0.3552608 shares of Lantu for each H-share held, along with a cash cancellation price of HKD 6.68 per share [2][7]. - The total acquisition price is set at HKD 10.85 per share, comprising a cash component of HKD 6.68 and an equity component valued at HKD 4.17 [7]. Group 3: Market Context and Performance - Dongfeng Group's stock has been undervalued, with a market capitalization of HKD 39.12 billion and a price-to-book (PB) ratio of only 0.25 as of July 31, 2025 [6]. - In contrast, Lantu Automotive has shown strong growth, delivering 85,697 vehicles in 2024, a year-on-year increase of approximately 70%, and has maintained a monthly sales volume exceeding 10,000 units since the beginning of 2025 [6][4]. Group 4: Strategic Implications - The innovative transaction structure is expected to strengthen Dongfeng's strategic positioning and set a benchmark for reform and innovation within the state-owned enterprise sector [4]. - Following the listing, Lantu Automotive aims to enhance its financing channels, improve brand image, and expand international operations, leveraging its advanced technology and product quality [6].