Daimler AG investment in BAIC Motor passenger car unit
Daimler AG invests further in BAIC Motor passenger car unit. Through the investment, Daimler will now control a 12% stake of BAIC constituted by issuance of shares as also seats for two members on the Board of Directors.
Both companies have decided to increase their stake in others companies by 1% to 51% thereby providing a suitable base for the initial public offering. Contract between two companies has been signed with Daimlerâ€™s shareholding rights left in balance depending on the outcome of the BAIC board decision.
The investment is the first time an international company has procured stake in a Chinese based original equipment manufacturer. BAIC is one of Chinaâ€™s largest automakers and it had sold over 1.5 million vehicles in 2011.